System and method for automotive inventory management and recordkeeping using multi-tiered distributed network transactional database

ABSTRACT

A system and method for automotive inventory management and recordkeeping using multi-tiered distributed network transactional database that provides blockchain-based permanent storage of manufacture, parts, maintenance, and any other records associated with an automobile.

CROSS-REFERENCE TO RELATED APPLICATIONS

CROSS-REFERENCE TO RELATED APPLICATIONS application No. Date Filed TitleCurrent Herewith SYSTEM AND METHOD FOR application AUTOMOTIVE INVENTORYMANAGEMENT AND RECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORKTRANSACTIONAL DATABASE Is a continuation-in-part of: 16/684,517 Nov. 14,2019 SYSTEM AND METHOD FOR AUTOMOTIVE INVENTORY MANAGEMENT ANDRECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORK TRANSACTIONALDATABASE which claims benefit of, and priority to: 62/767,757 Nov. 15,2018 SYSTEM AND METHOD FOR AUTOMOTIVE INVENTORY MANAGEMENT ANDRECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORK TRANSACTIONALDATABASE and is also a continuation-in-part of: 16/660,695 Oct. 22, 2019SYSTEM AND METHOD FOR CONDUCTING AND SECURING TRANSACTIONS WHENBLOCKCHAIN CONNECTION IS UNRELIABLE which claims benefit of, andpriority to: 62/749,665 Oct. 23, 2018 SYSTEM AND METHOD FOR CONDUCTINGAND SECURING TRANSACTIONS WHEN BLOCKCHAIN CONNECTION IS UNRELIABLE andis also a continuation-in-part of: PCT/US19/41500 Jul. 11, 2019 SYSTEMAND METHOD FOR SECURE STORAGE OF DIGITAL ASSETS TO FACILITATE ELECTRONICTRANSACTIONS which claims benefit of, and priority to: 62/697,377 Jul.12, 2018 SYSTEM AND METHOD FOR STORING, TRANSACTING AND SECURINGCRYPTOCURRENCIES AT VERY HIGH SPEEDS and also claims benefit of, andpriority to: 62/696,793 Jul. 11, 2018 SYSTEM AND METHOD FOR STORING,TRANSACTING AND SECURING CRYPTOCURRENCIES AT VERY HIGH SPEEDS CurrentHerewith SYSTEM AND METHOD FOR application AUTOMOTIVE INVENTORYMANAGEMENT AND RECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORKTRANSACTIONAL DATABASE Is a continuation-in-part of: 16/684,517 Nov. 14,2019 SYSTEM AND METHOD FOR AUTOMOTIVE INVENTORY MANAGEMENT ANDRECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORK TRANSACTIONALDATABASE which is a continuation-in-part of: 16/660,695 Oct. 22, 2019SYSTEM AND METHOD FOR CONDUCTING AND SECURING TRANSACTIONS WHENBLOCKCHAIN CONNECTION IS UNRELIABLE which is a continuation-in-part of:PCT/US19/28812 Apr. 23, 2019 ENHANCED INTERNATIONAL PAYMENT TRANSACTIONSYSTEM AND METHOD which claims benefit of, and priority to: 62/667,153May 4, 2018 ENHANCED INTERNATIONAL PAYMENT TRANSACTION SYSTEM AND METHODAnd also claims benefit of, and priority to: 62/661,595 Apr. 23, 2018SYSTEM AND METHOD FOR ENHANCED REALTIME SETTLEMENT SYSTEMS CurrentHerewith SYSTEM AND METHOD FOR application AUTOMOTIVE INVENTORYMANAGEMENT AND RECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORKTRANSACTIONAL DATABASE Is a continuation-in-part of: 16/684,517 Nov. 14,2019 SYSTEM AND METHOD FOR AUTOMOTIVE INVENTORY MANAGEMENT ANDRECORDKEEPING USING MULTI-TIERED DISTRIBUTED NETWORK TRANSACTIONALDATABASE which is a continuation-in-part of: 16/660,695 Oct. 22, 2019SYSTEM AND METHOD FOR CONDUCTING AND SECURING TRANSACTIONS WHENBLOCKCHAIN CONNECTION IS UNRELIABLE which is a continuation-in-part of:PCT/US19/13272 Jan. 11, 2019 MULTI-PARTNER REGIONAL OR NATIONALBLOCKCHAIN TRANSACTION SYSTEM which claims benefit of, and priority to:62/616,060 Jan. 11, 2018 SYSTEM AND METHOD FOR ORGANIZING AND MANAGING AREGIONAL OR COUNTRYWIDE BLOCKCHAIN TRANSACTION SYSTEM WITH MULTIPLEPARTNERS and is also a PCT filing of, and claims priority to: 16/208,853Dec. 4, 2018 SYSTEM AND METHOD FOR PERFORMANCE TESTING OF SCALABLEDISTRIBUTED NETWORK TRANSACTIONAL DATABASES Current Herewith SYSTEM ANDMETHOD FOR application AUTOMOTIVE INVENTORY MANAGEMENT AND RECORDKEEPINGUSING MULTI-TIERED DISTRIBUTED NETWORK TRANSACTIONAL DATABASE Is acontinuation-in-part of: 16/684,517 Nov. 14, 2019 SYSTEM AND METHOD FORAUTOMOTIVE INVENTORY MANAGEMENT AND RECORDKEEPING USING MULTI-TIEREDDISTRIBUTED NETWORK TRANSACTIONAL DATABASE which is acontinuation-in-part of: 16/660,695 Oct. 22, 2019 SYSTEM AND METHOD FORCONDUCTING AND SECURING TRANSACTIONS WHEN BLOCKCHAIN CONNECTION ISUNRELIABLE which is a continuation-in-part of: 16/208,853 Dec. 4, 2018SYSTEM AND METHOD FOR PERFORMANCE TESTING OF SCALABLE DISTRIBUTEDNETWORK TRANSACTIONAL DATABASES which claims benefit of, and priorityto: 62/594,519 Dec. 4, 2017 SYSTEM AND METHOD FOR CONCEPT OFHIGH-PERFORMANCE SCALABILITY and is also a continuation-in-part of:16/152,090 Oct. 4, 2018 SYSTEM AND METHOD FOR MULTI- TIERED DISTRIBUTEDNETWORK TRANSACTIONAL DATABASE which claims benefit of, and priority to:62/570,064 Oct. 9, 2017 MULTI-TIER BLOCKCHAIN BASED REGIONALIZEDCRYPTOCURRENCY SOLUTION and is also a continuation-in-part of:16/122,870 Sep. 5, 2018 SYSTEM AND METHOD FOR MULTI- TIERED DISTRIBUTEDNETWORK TRANSACTIONAL DATABASE which claims benefit of, and priority to:62/554,546 Sep. 5, 2017 MULTI-TIER BLOCKCHAIN-BASED REGIONALIZEDCRYPTOCURRENCY SOLUTION and also claims benefit of, and priority to:62/549,138 Aug. 23, 2017 System and Method for Enhanced CybercurrencyTransactions and also claims benefit of, and priority to: 62/547,227Aug. 18, 2017 System and Method for Enhanced Cybercurrency Transactionsand also claims benefit of, and priority to: 62/540,943 Aug. 3, 2017System and Method for Enhanced Cybercurrency Transactions the entirespecification of each of which is incorporated herein by reference.

BACKGROUND Field of the Art

The disclosure relates to the field of computer databases and moreparticularly to the field of using blockchain wallets to enhanceinventory management and recordkeeping in the automotive industry.

Discussion of the State of the Art

“Blockchain” is the name given to a new type of database that isdistributed, unmanaged, secure, and publicly viewable. Blockchaindatabases differ from traditional databases in several respects. First,traditional databases must be managed, and typically have a singlemanaging authority that has authorization to make changes to thedatabase. Blockchain databases are unmanaged, meaning that there is nosingle managing authority, and changes to the database are done byconsensus of computers that validate new entries in the database.Second, traditional databases are typically closed to public view,primarily because they are managed and usually held by a single managingauthority. As a result, information contained in a traditional databasecan be held in secret, provided that appropriate security measures arein place. Blockchain databases, on the other hand, are by their natureopen to public view. In fact, it is this very public availability thatis one of the defining characteristics of a blockchain database. Thefact that they are open to public view allows them to be managed byconsensus about the validity of new entries (even where the identitiesof the participants in the entry are not disclosed). Third, earlierentries in traditional databases are changeable unless locked orprotected by some means, usually by the managing authority, who canoverride such protections. In blockchain databases, prior validatedtransactions cannot be changed without invalidating the entire database.Blockchain databases are immutable by design to provide a tamper-proofdatabase history, and can only be changed by adding new transactions tothe database. Lastly, traditional databases are searchable, such thatolder entries can be found by entering some sort of query and having thecomputer search the database for matches. Blockchain databases, on theother hand, are encrypted and cannot be searched without knowing veryspecific information such as block height, hash, transaction id, etc.

These differences in function of traditional databases versus blockchaindatabases have enabled new functionality such as secure, largelyanonymous, decentralized transactions, but the new functionality comeswith significant limitations. Blockchain databases grow larger in sizeas they are used, making the processing times for adding new entrieslonger and longer. With currently-existing blockchain databases, theprocessing time for adding new transactions can be half an hour, ormore, which creates substantial problems in some applications.

What is needed is a new blockchain database system which retains thedesirable features of blockchain technology but reduces or eliminatesits limitations. Other limitations of current blockchain technologyinclude poor transactional performance and scalability, excess costs,complexity of use, and when used as the foundation for a cryptocurrency,fundamental limits to the number of available coins, currency valuestability within and between economic regions, lack of support ofmultiple currency valuations, and ease of use for illegal activities.

SUMMARY

Accordingly, the inventor has conceived and reduced to practice, asystem and method for automotive inventory management and recordkeepingusing a multi-tiered blockchain database that provides blockchain-basedpermanent storage of manufacture, parts, maintenance, and any otherrecords associated with an automobile.

What is provided is a blockchain system which may support features toimprove or alleviate the downsides of blockchain systems currentlyin-use, features including dynamic address segmentation wherein a recordaddress can have segments with dynamic length to form a multi-tierhierarchy, flexible content to allow for multiple token types within thesame blockchain, demarcated blocks to support real-time transactions,and configurable multi-level permission schemes. The system within maybe utilized with a configurable block that can be used in any part ofthe system, as the main blockchain, or as a local currency blockchain,or as a custom blockchain, so the same software container class can beused for all applications. Only configuration need be changed. A newtechnician, dealer, or independent repair shop may go through onboardinginto the system by being required to identify themselves, having picturetaken of their legal ID, a picture of their faces, and providingadditional relevant information such that they may be identified as alegal citizen versus known local and global databases. Once aprospective user or organization is identified, the wallet isperpetually associated with this identity.

A system for automotive inventory management and recordkeeping usingmulti-tiered distributed network transactional database is provided,comprising: a blockchain network comprising at least a processor, amemory, and programming instructions stored in the memory and operableon the processor, wherein the programming instructions, when operatingon the processor, cause the processor to: operate a blockchain networkwithout security provisions; wherein the blockchain network isaccessible only with permission from the blockchain provider; executesmart contracts with specialized blockchain nodes; wherein thespecialized blockchain nodes are contained within the blockchainnetwork; wherein the smart contracts are capable of being executed basedon a plurality of variable node types; wherein the plurality of variablenode types allow or disallow transaction types to be written to theblockchain utilizing predefined node rules; operate at least one smartcontract pricing node for the purpose of assisting smart contracts withexecuting by routing record and contract requests to the correct nodeson the blockchain; operate long-life tokens within the blockchain thatmay last indefinitely; operate short-life tokens within the blockchainwhich may last until a predetermined termination prerequisite is met;allow multiple blockchain implementations to be utilized with differingsettings, variable node types, and token types; facilitate tokentransferal transactions within the blockchain; facilitate smart contracttransactions and transferals within the blockchain; facilitate the useof pre-compiled code to be implemented as a predefined contract withinthe blockchain; a technician wallet comprising at least a processor, amemory, and programming instructions stored in the memory and operableon the processor, wherein the programming instructions, when operatingon the processor, cause the processor to: maintain and keep track of aplurality of unique tokens for records of parts or components ofvehicles; maintain and keep track of a plurality of unique tokens forrecords of software and software versions of components of vehicles;allow the owner of the technician wallet to transfer a vehicle componenttoken or software token to a vehicle wallet; a commercial walletcomprising at least a processor, a memory, and programming instructionsstored in the memory and operable on the processor, wherein theprogramming instructions, when operating on the processor, cause theprocessor to:

contain and maintain a plurality of tokens for vehicles, vehiclecomponents, and software related to vehicles or vehicle components;allow transference of maintained tokens to a technician's wallet; allowfor monitoring of token deposition and withdrawal from the commercialwallet; a manufacturer wallet comprising at least a processor, a memory,and programming instructions stored in the memory and operable on theprocessor, wherein the programming instructions, when operating on theprocessor, cause the processor to: create new tokens for completedvehicles, or vehicle components, or vehicle software, or componentsoftware, including records for data for such, or any combination ofthese tokens; issue the newly created tokens to a commercial wallet atthe manufacturer wallet administrator's discretion; an end user walletcomprising at least a processor, a memory, and programming instructionsstored in the memory and operable on the processor, wherein theprogramming instructions, when operating on the processor, cause theprocessor to: hold any transferred tokens for vehicles, vehiclecomponents, vehicle software, and the data records for such; wherein therecords for any given individual component or piece of software orvehicle may include records of any servicing or repairs or updates thathave been performed on the component or vehicle or software; provide anumeric score for a vehicle comprised of components and software basedon the maintenance records available for the components and software ofthe vehicle, where applicable; and maintain private control of tokens inthe end user wallet to maintain user privacy of personal data.

Further, a method for transacting in an environment with intermittentconnectivity via a network backbone to a blockchain is provided,comprising the steps of: operate a blockchain network without securityprovisions, using a blockchain network; wherein the blockchain networkis accessible only with permission from the blockchain provider, using ablockchain network; execute smart contracts with specialized blockchainnodes, using a blockchain network; wherein the specialized blockchainnodes are contained within the blockchain network, using a blockchainnetwork; wherein the smart contracts are capable of being executed basedon a plurality of variable node types, using a blockchain network;wherein the plurality of variable node types allow or disallowtransaction types to be written to the blockchain utilizing predefinednode rules, using a blockchain network; operate at least one smartcontract pricing node for the purpose of assisting smart contracts withexecuting by routing record and contract requests to the correct nodeson the blockchain, using a blockchain network; operate long-life tokenswithin the blockchain that may last indefinitely, using a blockchainnetwork; operate short-life tokens within the blockchain which may lastuntil a predetermined termination prerequisite is met, using ablockchain network; allow multiple blockchain implementations to beutilized with differing settings, variable node types, and token types,using a blockchain network; facilitate token transferal transactionswithin the blockchain, using a blockchain network; facilitate smartcontract transactions and transferals within the blockchain, using ablockchain network; facilitate the use of pre-compiled code to beimplemented as a predefined contract within the blockchain, using ablockchain network; maintain and keep track of a plurality of uniquetokens for records of parts or components of vehicles, using atechnician wallet; maintain and keep track of a plurality of uniquetokens for records of software and software versions of components ofvehicles, using a technician wallet; allow the owner of the technicianwallet to transfer a vehicle component token or software token to avehicle wallet, using a technician wallet; contain and maintain aplurality of tokens for vehicles, vehicle components, and softwarerelated to vehicles or vehicle components, using a commercial wallet;allow transference of maintained tokens to a technician's wallet, usinga commercial wallet; allow for monitoring of token deposition andwithdrawal from the commercial wallet, using a commercial wallet; createnew tokens for completed vehicles, or vehicle components, or vehiclesoftware, or component software, including records for data for such, orany combination of these tokens, using a manufacturer wallet; issue thenewly created tokens to a commercial wallet at the manufacturer walletadministrator's discretion, using a manufacturer wallet; hold anytransferred tokens for vehicles, vehicle components, vehicle software,and the data records for such, using an end user wallet; wherein therecords for any given individual component or piece of software orvehicle may include records of any servicing or repairs or updates thathave been performed on the component or vehicle or software, using anend user wallet; provide a numeric score for a vehicle comprised ofcomponents and software based on the maintenance records available forthe components and software of the vehicle, where applicable, using anend user wallet; and maintain private control of tokens in the end userwallet to maintain user privacy of personal data, using an end userwallet.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The accompanying drawings illustrate several aspects and, together withthe description, serve to explain the principles of the inventionaccording to the aspects. It will be appreciated by one skilled in theart that the particular arrangements illustrated in the drawings aremerely exemplary, and are not to be considered as limiting of the scopeof the invention or the claims herein in any way.

FIG. 1 (PRIOR ART) is a diagram illustrating the operation of existingcryptocurrencies using blockchain technology.

FIG. 2 shows an exemplary overview of a standard cloud computinginfrastructure, according to an aspect.

FIG. 3 is a diagram showing an exemplary system overview of amulti-tiered blockchain database.

FIG. 4 is a diagram showing an exemplary technical improvement toblockchain databases: demarcated block sections.

FIG. 5 shows an exemplary multi-tiered blockchain database softwarearchitecture overview, according to an aspect of the invention.

FIG. 6 shows an exemplary conceptual framework for a multi-tieredcryptocurrency.

FIG. 7 is a flow diagram of an exemplary exchange process, according toan aspect.

FIG. 8 is a diagram showing an exemplary fee and revenue structure for amulti-tiered cryptocurrency.

FIG. 9 is a diagram showing an exemplary technical improvement toblockchain databases: extended address space.

FIG. 10 is a block diagram illustrating an exemplary hardwarearchitecture of a computing device.

FIG. 11 is a block diagram illustrating an exemplary logicalarchitecture for a client device.

FIG. 12 is a block diagram showing an exemplary architecturalarrangement of clients, servers, and external services.

FIG. 13 is another block diagram illustrating an exemplary hardwarearchitecture of a computing device.

FIG. 14 shows an overview of an exemplary high-performance scalabilitytest configuration, according to an aspect.

FIG. 15 shows an exemplary testing system, according to an aspect.

FIG. 16 shows a simplified version of an exemplary typical in-countrynetwork, according to an aspect.

FIG. 17 shows an exemplary network, according to an aspect.

FIG. 18 shows an exemplary system connecting banks, customers, andclearing houses, according to an aspect.

FIG. 19 shows an exemplary overview of a transaction according to thenovel approach.

FIG. 20 shows a simplified diagram of a more traditional type coldstorage facility or bank that can be used to store crypto currencies tomake quick raids more difficult.

FIG. 21 shows a simplified diagram of a novel approach how to enableusage while crypto currencies are in cold storage.

FIG. 22 shows a simplified diagram of a software used to take cryptosinto a novel type cold storage that allows for continued use of storedcrypto currencies.

FIG. 23 shows an exemplary flow diagram of a point-of-sale transactionin which transaction information can be sent to the backbone via trusteddevices on the network if buyer or merchant phones are unable todirectly connect.

FIG. 24 shows a typical point-of-sale transaction between a merchant anda buyer.

FIG. 25 is a diagram illustrating an automotive inventory management andrecordkeeping process flow for car manufacturing.

FIG. 26 is a diagram illustrating an automotive inventory management andrecordkeeping process flow for car maintenance process flow.

DETAILED DESCRIPTION

The inventor has conceived, and reduced to practice, a system and methodfor automotive inventory management and recordkeeping using amulti-tiered blockchain database that provides blockchain-basedpermanent storage of manufacture, parts, maintenance, and any otherrecords associated with an automobile.

Definitions

The term “cryptocurrency” as used herein includes not only its classicmeaning but can also mean a representation of value in digitized form,secured by encryption, which may be transferred to others or exchangedwith others for goods and services. Cryptocurrencies are typically notassociated with a governmental authority, although it would be possiblefor a governmental authority to issue one. The definition of acryptocurrency does not necessarily require distributed, unmanagedtracking and processing, although all major cryptocurrencies currentlyin use are so defined. Cryptocurrencies are often referred to a ditigalcurrencies or virtual currencies, and the valuation associated withcryptocurrencies is often referred to as coins or tokens, withfractional parts of a coin or token typically being allowed to betransferred or utilized.

The phrase “real currency” (aka fiat money) as used herein means theofficial currency of a country, region, or other globally-recognizedgovernmental entity. For example, the U.S. dollar is the officialcurrency of the country of the United States of America, the Euro is theofficial currency of the region of the European Union, and the Scottishbank notes are an officially recognized currency in Scotland,notwithstanding the fact that they are tied to the value of the BritishPound.

The phrase “functional area” as used herein means any industry,grouping, association, political region (for example special economiczone), type of work, or other field of human endeavor, which may or maynot correspond to a geographical area.

The phrase “geographical area” as used herein is used in its commonmeaning as any demarcated area of the Earth. Geographical areas areoften, but not always, defined by agreed-upon borders such as betweencountries, states, counties, and cities.

The terms “mine” or “mining” as used herein mean incentivizing nodes toprovide computer processing power to validate transactions by generatinga small additional portion of the valuation associated with a blockchaindatabase for each successful entry validation in that database, andgiving that small portion to a node or nodes that perform(s) thesuccessful entry validation.

The term “node” as used herein means any one of a plurality of computersthat validate transactions in the blockchain database as part of apeer-to-peer network.

“Artificial intelligence” or “AI” as used herein means a computer systemor component that has been programmed in such a way that it mimics someaspect or aspects of cognitive functions that humans associate withhuman intelligence, such as learning, problem solving, anddecision-making. Examples of current AI technologies includeunderstanding human speech, competing successfully in strategic gamessuch as chess and Go, autonomous operation of vehicles, complexsimulations, and interpretation of complex data such as images andvideo.

“Machine learning” as used herein is an aspect of artificialintelligence in which the computer system or component can modify itsbehavior or understanding without being explicitly programmed to do so.Machine learning algorithms develop models of behavior or understandingbased on information fed to them as training sets, and can modify thosemodels based on new incoming information. An example of a machinelearning algorithm is AlphaGo, the first computer program to defeat ahuman world champion in the game of Go. AlphaGo was not explicitlyprogrammed to play Go. It was fed millions of games of Go, and developedits own model of the game and strategies of play.

Unmanaged, distributed network, transactional databases (commonly knownas “blockchain” databases) can be used to facilitate transactions in amanner that was previously not possible: they allow transactions betweenusers without any form of centralized authority that has control overthose transactions. The keys to this new technology are encryption,which allows security of the transaction, and distributed publicconfirmation, which allows trust in the validity of the transaction.There are innumerable uses for this new technology, such as transferringmoney, creating automatically-executing contracts, forming andautomatically executing escrow transactions, etc. In fact, any assetthat can be represented in digital form can be transferred or exchangedusing blockchain databases.

The first, and still most common, use of blockchain databases was toenable the use of cryptocurrencies without a centralized controllingauthority. However, while blockchain databases have significantadvantages for use in cybercurrencies, they also have serious drawbacks,which continue to plague the cybercurrencies that use blockchain. As theblockchain for a given cybercurrency gets longer, transactions can takehalf an hour, or more, to reach a critical number of confirmations forvalidation of the transaction in the peer-to-peer network that managesthe blockchain. This latency in concluding a transaction leads tosubstantial uncertainty about the value of the transaction until it isfinalized. Combined with the current volatility of some cybercurrencies,this can lead to large fluctuations in value between the time that atransaction is initiated and the time that it is finalized. Thisvaluation uncertainty is a problem for all sizes of transactions, butmakes very small transactions particularly unattractive. For example,using existing blockchain-based cybercurrencies, buying a cup of coffeewould be problematic. Not only would the buyer and seller need to waiton the order of half and hour for the transaction to complete, thecybercurrency equivalent of two dollars sent by the buyer could end upbeing the equivalent of three dollars by the time that the transactionis confirmed and finalized. Thus, each party to a transaction may gainor lose a large amount of the value of the transaction in the timerequired to complete the transaction.

Cybercurrencies, as they currently exist, are monolithic, which is tosay that they are global, single-tier, single-unit currencies. They areglobal in the sense that there are no regional restrictions ontransactions. Anyone with a computer anywhere in the world can make atransaction with anyone else anywhere in the world. They are single-tierin the sense that there are no higher or lower tiers of cybercurrencywithin the same system for which they can be traded or exchanged. Theyare single-unit in that there is a denominated unit (often referred toas a “coin” or “token”) which is the unit of value for all transactions.Fractions of a denominated unit may be transferred, but the denominatedunit never changes.

The problem with monolithic cybercurrencies is that the time forprocessing of transactions grows as the blockchain upon which they arebuilt grows. In certain cybercurrencies currently in use, the processingtime for transactions can half an hour, or more. This is the timerequired to reach a critical number of confirmations for validation ofthe transaction in the peer-to-peer network that manages the blockchain.The longer the cybercurrency is in operation, the larger the blockchaingrows, and the longer the latency becomes between the initiation of atransaction and its finalization.

This latency makes certain transactions untenable for time reasons. Thisis particularly the case for small transactions where the buyer andseller would not ordinarily stand around waiting for the transaction tocomplete. For example, in buying a cup of coffee, the buyer and sellerexpect to conclude the transaction within a few seconds, or within aminute or two at the most. The buyer orders the coffee, makes thepayment, and the seller hands the buyer the coffee, all within a minuteor two. Having to wait half an hour or more for the transaction tocomplete makes this sort of small value transaction untenable.

This latency also makes certain transactions untenable for valuationreasons. A long latency creates uncertainty in concluding a transactionleads to substantial uncertainty about the value of the transactionuntil it is finalized. The longer the latency and the higher thevolatility of the cybercurrency, the more uncertainty is created invalue, and the less tenable a cybercurrency is for making thattransaction. This problem exists for transactions of all values, but forlarger transactions, the parties involved may be willing to take therisk of fluctuation for any number of reasons (e.g., the value to themof making an anonymous transaction may be higher than making thetransaction using other types of currency). For smaller transactions,the reasons for taking the risk of value fluctuation are largelyeliminated. For example, in the example of the purchase of a cup ofcoffee, there is little reason for either of the parties involved tocare whether the transaction is anonymous. Since cybercurrencies can beextremely volatile, a half hour latency can cause the parties to atransaction to gain or lose a large amount of the value of thetransaction in the time required to complete the transaction.

In one embodiment, the multi-tiered blockchain database system can beused to improve the viability of small value cybercurrency transactions.The improvement involves creating multiple tiers within thecybercurrency with characteristics that reduce the latency between theinitiation and finalization of transactions, such that waiting times andrisk of value fluctuation for both the buyer and seller are reduced toacceptable levels for small value transactions.

In certain embodiments, a cybercurrency system may be enhanced to reducethese latencies by including one or more tiers in which transactions arelimited to those of a lesser denomination, with a limited number ofledger transacting nodes and a limited number of gateways interactingbetween the general area of unlimited currency and the demarcated area.In some embodiments, the tiers may represent different tiers of currencymay be issued, and exchanges of cybercurrency among the tiers may beallowed. In some embodiments, the tiers may be limited to a certaingeographical region, where the cybercurrency in that section may betraded at a fixed rate to another currency in the same area, which maybe a real currency rather on a major cryptocurrency. In some suchembodiments, a central issuer, or bank, with a reserve, may be allowedstabilize the cybercurrency or to tie the value of the cybercurrency tothe local real currency. In some embodiments, so called “mixer wallets”containing more than one cryptocurrency may be blocked or confiscated toavoid misuse of funds for illegitimate purposes.

In one embodiment, lower tiers of cryptocurrency would be restricted inin a number of ways. Lower tiers of cryptocurrency would be allowed tohandle only fractional currency, that is, currency that is a fraction ofa whole currency unit, usually equivalent to coins. The machines thatprocess transactions in lower tiers of cryptocurrency could process onlyin their own region, and only fractional transactions. Also, becauseonly fractional transactions of fractional currency occur in these lowertier currencies, no currency mining could occur, because no mining isallowed in these lower tier currencies. If a user wants to change thebetween tiers, the currency would be reserved via gateways and blockedinto the ledger in the main region and transferred into the lower regionand made available as fractional currency. A small portion of anytransfer would be allocated to the operators of the ledger machines ineach region to pay operating costs. With no mining occurring in theregions, and with the regions being regionally limited in range, thecost of operation would be much lower. Also, the local fractionalcurrency could be, for example, bound to a local physical currency suchas, for example, the U.S. dollar or the Euro, rather than to acybercurrency such as Bitcoin or Ether, so there might be a local mastercurrency available, issued by the conversion gateway, which would bepaid for by currency in the upper domain and then actually converted bythe gateways into a local physical currency. Those gateways might act ascentral banks, rather than as gateways, issuing a fractional currencyonly. Thus the transactions may be made faster and less vulnerable tocurrency fluctuations.

In some embodiments, the ledgers may be split by years, with the currentledgers containing only transaction for the current year or two, and allprevious transactions kept in archived ledgers, accessed only if a userhas a wallet with an old balance. In such a case, as soon as the userwants to use the old balance, the wallet is retrieved from the archive,updated, and removed from the archive. Thus archived wallets may take alittle longer to transact, but current wallets are much faster, becausethe ledger is kept current only in the ledger currency. Because theledgers are regionalized, they can be much smaller and thus processtransactions much more quickly.

It is important to note that the regionalization of lower tiercurrencies does not mean a ledger is limited to one country. Forexample, in North America, each region could contain a piece of Canada,the United States, and Mexico. Thus, including multiple jurisdictionscould avoid putting a region under the control of just one country.Wallets could simultaneously contain the physical currency of multipleregions, such as, for example, Euros, dollars, and yen. Most peoplespend currency in their home region, so merchants could executetransactions much more cheaply, because of the reduced risk of currencyfluctuations in most cases.

Further, in some embodiments, when liquidity runs below a certain level,due to large outflow, a program or an AI module in the system can takeat least one of several countermeasures: a) it can change exchange rateto reduce outflow, b) it can offer an interest for delaying aconversion, or c) it makes a cash call on certain members of a reservegroup to allow a larger reserve to be built up quickly and thus maintainliquidity. This process can be triggered in an automated way by softwareand or an AI supervisory module (not shown) running as part of themanagement software of the system on at least one of the servers or aspart of the EVM system (or similar) or both.

In some embodiments, enhancements to existing blockchain technology maybe used to reduce the latency associated with current cryptocurrencysystems. In currently existing cryptocurrencies, the blockchains used astransaction ledgers are never retired or archived, leading toincreasingly-long block chains, and slow processing times in thepeer-to-peer network, and increasing latencies. Two methods, inparticular, may be used to retire or archive older portions of theblockchain, leaving a shorter blockchain as the active portion, andreducing latency times. First, a section closing method may be usedwherein an entire blockchain for a certain period (for example, theprevious year, as in year-end closing in accounting) is reconciled, thebalances of each account (e.g., wallet) are moved to a new, shorterblockchain, and the old blockchain is archived. Second, an asynchronousclosing method may be used wherein the old blockchain is kept open, butarchived. A new blockchain is created, but account balances are notautomatically transferred. Whenever an activity involves an entry in theold blockchain, that particular entry is consolidated and closed outfrom the old blockchain, and is transferred to the new blockchain. Inthis manner, the old blockchain will gradually be fully consolidated andclosed out.

In some cases, a multi-tiered blockchain database may be used toimplement a cryptocurrency system. Such an implementation may includeone or more demarcated sections, or areas, in which transactions arelimited to those of a lesser denomination, with a limited number ofledger transacting nodes and a limited number of gateways interactingbetween the general area of unlimited currency and the demarcated area.Such areas may have a limited-time active ledger, and older transactionsare moved to an archive to speed up new transactions. In such cases, oldwallet entries are then transferred at the time of use to a new sectionof a new ledger. Also, in that demarcated area, mining could berestricted. Further, in this area, a central issuer, or bank, with areserve, may stabilize the currency, and currency in this area may betraded at a fixed rate to another currency in the same area, which maybe a real currency rather on a major cryptocurrency. Additionally, insuch areas, so called mixer wallets may be blocked or confiscated toavoid misuse of funds for illegitimate purposes.

In some embodiments, the implementation will include a number ofstandardized smart contracts to provide baseline support of some keyfunctionality including coupons, timed escrow (pay after N days),key-based escrow, and other related functions. Providing a set ofstandardized smart contracts will mitigate the problem of an explodingworld of poorly-written smart contracts in the same way careful designand engineering is required to effectively use stored procedures inmodern databases.

In some embodiments, support may be included for anonymous messaging inthe block chain. Such messaging may used to send basic messages betweenboth parties as well as instructions to smart contracts. Such messageswould be limited to text fields only, so as to eliminate a potentialsecurity hole where links and code (such as JavaScript) could beincorporated in messages for nefarious purposes.

In some embodiments, the wallets established for holding, tracking, andtransferring valuation associated with entries in a blockchain databasemay be restricted to holding or tracking only valuation associated witha certain tier or tiers, a certain functional area or areas, a certaingeographic area or areas, or any combination of these restrictions. Inother embodiments, there may be no such restriction, and wallets wouldbe allowed to hold, track, or transfer to or from a plurality of tiers,functional areas, or geographical areas. In some embodiments, walletswill allow users to see the value of their stored coinage in theirnative coin value or normalized to the wallet's default currency basedon current market prices for valuation.

FIG. 1 (PRIOR ART) is a diagram illustrating the operation of existingcryptocurrencies using blockchain technology 100. A sender 101 initiatesa transaction request 102, which includes the sender's digital signature103, a deposit of a digital asset 104 such as an amount ofcryptocurrency, and the recipient's public encryption key 105. Thetransaction request 102 is placed into a peer-to-peer distributedcomputing network 106 associated with this cryptocurrency, where it istimestamped, bundled into a block with other transactions and a hash ofall previous blocks in the chain, and broadcast to all nodes 107 in thenetwork 106. Each node 107 that receives the block 108 subjects it torepeated encryptions until a hash is found that has a certain number ofzeros at the beginning, which serves as a confirmation of validity. Oncethe required hash is found for the block 108, the hash is broadcast backto the network 106 for confirmation by other nodes 107 in the network106. When a threshold number of confirmations are obtained, the block108 is permanently added to the blockchain 109, which serves as anunchangeable ledger of transactions. The transaction is completed, andthe recipient 110 now owns the digital asset 104 deposited with thetransaction request 102.

The nodes 107 typically hold copies of the blockchain, which acts as theledger of a blockchain transaction. Also, the sender 101 and recipient110 have digital wallets (not shown) that store information about theiraccounts. The complete details of blockchain transactions are not shownhere, but they are well known in the art. Examples of cybercurrencycurrently using such an approach are Bitcoin, which has the bitcoin asthe principal unit of currency and the satoshi, equal to 0.00000001bitcoin. Another cybercurrency is the Ether (ETH), one of which iscurrently (mid July 2017) valued at approximately one-twelfth of aBitcoin (BTC) and has approximately one million subunits. The problem,as mentioned above, is that it can take roughly half an hour to get asufficient number of ledgers in a blockchain to execute a simple wallettransaction. For example, when a user wants to send an amount from onewallet to another, he needs to point to the address where his walletkeeps the bitcoin that he has currently with his private pointer andtake the amount in that location. He then points to the payee andindicates the amount that he wants to send to the payee, retaining therest for himself as the payor. The amount in that wallet location issplit in two, with one amount sent to the payee and the remainder sentback to the payor. Such is the transaction in the blockchain, which canbe publicly inspected. When a sufficient number of nodes in theblockchain community have accepted this transaction, it is consideredfulfilled and transacted. The problem is that most participants who makesuch transactions, often for a small amount of satoshi, use most of thecapacity for mining new bitcoin, so that mining is becoming increasinglymore expensive. As a result, with the growing size of the ledger, thetime for this transaction, waiting in queue and then actually executing,grows exceedingly long, leaving the cybercurrency involved in thetransaction vulnerable to currency fluctuations. Also, mixer service ormixer wallets are sometimes used to anonymize currency. Many approachesexist and are known in the art.

One or more different aspects may be described in the presentapplication. Further, for one or more of the aspects described herein,numerous alternative arrangements may be described; it should beappreciated that these are presented for illustrative purposes only andare not limiting of the aspects contained herein or the claims presentedherein in any way. One or more of the arrangements may be widelyapplicable to numerous aspects, as may be readily apparent from thedisclosure. In general, arrangements are described in sufficient detailto enable those skilled in the art to practice one or more of theaspects, and it should be appreciated that other arrangements may beutilized and that structural, logical, software, electrical and otherchanges may be made without departing from the scope of the particularaspects. Particular features of one or more of the aspects describedherein may be described with reference to one or more particular aspectsor figures that form a part of the present disclosure, and in which areshown, by way of illustration, specific arrangements of one or more ofthe aspects. It should be appreciated, however, that such features arenot limited to usage in the one or more particular aspects or figureswith reference to which they are described. The present disclosure isneither a literal description of all arrangements of one or more of theaspects nor a listing of features of one or more of the aspects thatmust be present in all arrangements.

Headings of sections provided in this patent application and the titleof this patent application are for convenience only, and are not to betaken as limiting the disclosure in any way.

Devices that are in communication with each other need not be incontinuous communication with each other, unless expressly specifiedotherwise. In addition, devices that are in communication with eachother may communicate directly or indirectly through one or morecommunication means or intermediaries, logical or physical.

A description of an aspect with several components in communication witheach other does not imply that all such components are required. To thecontrary, a variety of optional components may be described toillustrate a wide variety of possible aspects and in order to more fullyillustrate one or more aspects. Similarly, although process steps,method steps, algorithms or the like may be described in a sequentialorder, such processes, methods and algorithms may generally beconfigured to work in alternate orders, unless specifically stated tothe contrary. In other words, any sequence or order of steps that may bedescribed in this patent application does not, in and of itself,indicate a requirement that the steps be performed in that order. Thesteps of described processes may be performed in any order practical.Further, some steps may be performed simultaneously despite beingdescribed or implied as occurring non-simultaneously (e.g., because onestep is described after the other step). Moreover, the illustration of aprocess by its depiction in a drawing does not imply that theillustrated process is exclusive of other variations and modificationsthereto, does not imply that the illustrated process or any of its stepsare necessary to one or more of the aspects, and does not imply that theillustrated process is preferred. Also, steps are generally describedonce per aspect, but this does not mean they must occur once, or thatthey may only occur once each time a process, method, or algorithm iscarried out or executed. Some steps may be omitted in some aspects orsome occurrences, or some steps may be executed more than once in agiven aspect or occurrence.

When a single device or article is described herein, it will be readilyapparent that more than one device or article may be used in place of asingle device or article. Similarly, where more than one device orarticle is described herein, it will be readily apparent that a singledevice or article may be used in place of the more than one device orarticle.

The functionality or the features of a device may be alternativelyembodied by one or more other devices that are not explicitly describedas having such functionality or features. Thus, other aspects need notinclude the device itself.

Techniques and mechanisms described or referenced herein will sometimesbe described in singular form for clarity. However, it should beappreciated that particular aspects may include multiple iterations of atechnique or multiple instantiations of a mechanism unless notedotherwise. Process descriptions or blocks in figures should beunderstood as representing modules, segments, or portions of code whichinclude one or more executable instructions for implementing specificlogical functions or steps in the process. Alternate implementations areincluded within the scope of various aspects in which, for example,functions may be executed out of order from that shown or discussed,including substantially concurrently or in reverse order, depending onthe functionality involved, as would be understood by those havingordinary skill in the art.

Conceptual Architecture

The inventors have identified and eliminated these limits includingreducing transaction latency and costs, micro payments that can behandled cost effectively, cracking the limits to growth, being a stableand localized store of value, coexisting with multiple cryptocurrencies,ease of use by the masses, and enhancing criminal deterrents.

What is clearly needed is a better system and method of executingcybercurrency transactions, especially for small transactions, to avoidsuch currency fluctuation risks and close transactions in a much shorterperiod of time.

In some cases, a limited amount of crypto currency may be sent by amessage in form of an attached smart contract or credentials foraccessing a cloud-based bot program. Further, certain contracts cantemporarily be blocked from being active, pending a dispute resolution.

Additionally, as part of the right to mine the top level coins, usersagree to transact for free services in the lower levels, and a thirdparty may be tasked to inspect and audit and act as an assurance entityfor one or more regions of the crypto currency in return for atransaction fee in each region inspected and assured.

In a system where payments are done using tokens representing acurrency, these tokens may be transacted on a blockchain and sometimesmoved among banks, possibly resulting in an imbalance of bank FIATaccounts. In such cases, from time to time one or more banks may requirea transfer on an RTGS system to correct an such an imbalance. In thosecases where said RTGS system is not available during hours ofnon-operation, banks may move the RTGS transfer to a clearing house thatis operational non-stop without any breaks, thus enabling settlements atany time of any day of the year. In some cases, to avoid complicatedtransfers of operations, such operations may always run via a clearinghouse. Further, the transfers to the clearing house are operated usingthe block chain network, to avoid any limitation of the RTGS time ofoperation. Additionally, should a particular bank's available balance onits FIAT account drop below a preset threshold, either the central bankor another pre-agreed partner will automatically launch an infusion ofadditional FIAT funds into the bank's account to maintain sufficientliquidity. Alternatively, rather than depending on a preset threshold,an AI system may be used to calculate the level upon which such aninfusion is made, and also to calculate the required size of theinfusion to stabilize the bank. In all such cases, one or more personsor institutions are notified at or shortly before such an event.

Detailed Description of Exemplary Aspects

FIG. 24 shows a point-of-sale (POS) transaction 2500 between a merchantphone (or other point of sale, or POS, device) 2501 and a buyer phone2510, according to an aspect of the invention. Embedded in a quickresponse (QR) code 2502 (or in some cases other 2D barcode, or otherenhanced barcodes, including but not limited to multi-dimensional ordynamic barcodes, dynamic barcodes with time signature, coloredbarcodes, any combination of the list etc.) are information sections2503 a-n comprising additional information for different networks andpayment information. During the transaction, the buyer's phone camera2512 receives 2520 QR code 2502 and sends 2530 payment information 2511to the merchant's phone via the network. (if no carrier or Wi-Fi networkis available, other network methods can be employed, as discussedbelow.) The transaction is complete once the payment has been sent tothe merchant's phone and shows up in his/her increased balance 2504. Inother cases, any kind of barcodes may be sent to the merchant phone asevidence that the transaction has been made. In yet other cases themerchant device may not be a phone but a tablet or a notebook computer,a desktop computer, a modified cash register, or any other type ofsuitable computing device with software installed.

Alternatively, a secured transaction can be based on three-way opticalinteraction (P2P barcode). In this case, the buyer reads an encrypteddynamic (that is, one that may be changed every several seconds forsecurity purposes) barcode (or QR code) with a time signature. Thebarcode or QR code represents a merchant identity or the merchantidentity and additional transaction details (for example detailed listof groceries and their prices, as well as in some cases networkinformation). The buyer validates (in a closed and trusted app) themerchant identity and transaction details and approves to send therequired digital money from his wallet to the merchant. In those caseswhere there is no network available, the buyer may present an encryptedbarcode to the merchant. The merchant then reads the barcode via themerchant wallet app (closed and trusted app) and validates thecorrectness of the transaction. The merchant sends approval via anotherencrypted barcode to the buyer that summarizes the transaction, so thetwo sides have both evidence and a receipt that the transaction has beencompleted. When the receipt of the merchant or the receipt of the buyeris sent and received on appropriate servers, the transaction may beadded to a blockchain ledger and the transaction declared completed.

FIG. 23 shows an exemplary flow diagram 2400 of such a POS transaction,in which only the user side is shown. The transaction starts on the userside 2401 when he/she wants to buy a product. In the steps that follow,the user starts a transaction 2402, the camera activates to read the QRor 2D barcode 2403, and the camera extracts the payment and networkinformation 2404.

Because there are multiple types of networking information embedded inthe QR code, of interest is the specific networking informationextracted in step 2404. The specific networking information may be usedin step 2405, a decision tree that determines the best choice ofnetwork. For example, if the merchant and buyer have different phones(android versus iOS) a different type of network may be the appropriatechoice compared to if both parties have the same phone. This is becausecertain types of networks only work between two phones with the sameoperating system versus two phones with different operating systems.Therefore, there are typically four P2P network options, including insome cases additionally near field communication or other suitablemethods to choose from in step 2406 a-n, depending on the situation:direct Wi-Fi, ad hoc Wi-Fi, P2P Wi-Fi, P2P barcode and P2P Bluetooth, orany other suitable option. Other factors that influence network choiceare whether the location has fixed Wi-Fi or whether the merchant iswilling to share its Wi-Fi. If not, an ad-hoc P2P type network may bebest. For example, in some cases, rather than using a traditionalwireless local network, the two devices may exchange a series of atleast two 2D barcodes or QR codes with each other, having the same neteffect of conducting a private local data exchange. In some aspects,such private data exchanges are conducted using closed and trustedapplications (apps) on each device that create and read dynamic, timedependent and encrypted 2d barcodes or QR codes.

Step 2407 a-n shows the different kinds of connection parametersnecessary for each type of P2P network. If the connection fails duringstep 2408, the transaction loops back to step 2409 to try a differentapproach and select the next best connection parameter. If theconnection succeeds during step 2408, the transaction continues on tostep 2410. Step 2411 tests if the transaction is connected to thebackbone. If not, both the merchant and buyer phones propagate thetransaction (with increasing intervals) to other known, trusted devicesin step 2413 until one of these devices connects to the backbone. If so,the transaction ends at step 2412.

This process 2400 protects merchants by ensuring buyers can't cheat ordeny involvement in a transaction and vice versa. Buyers and sellers areaccountable for their transactions because of step 2411, in which otherdevices can get an encrypted copy of this transaction, and any or all ofthem may then send this transaction to the backbone. (For example, evenif the buyer throws away his device and claims to not have done thetransaction, said transaction may have propagated through other devicesto the backbone and still be registered.)

This process 2400 also ensures that the network can't be abused or usedfor personal gain. Because the network is only live for the duration ofthe transaction (a few seconds or minutes), and is not available afterthe transaction is completed, the user can't use it to download movies,for example. Also, in cases where the network only connects to themerchant's phone, instead of through to the backbone, the user won'thave access to the Internet. In these cases the transaction ispropagated to the backbone from the merchant's phone into theblockchain, etc.

Once a transaction has been sent to the backbone, it is added to theblockchain. Multiple copies may be added and should reconcile. If theydon't, it may invoke a dispute resolution. Typically, offlinetransactions are limited in amount and numbers of transactions. Amountand number may vary depending on account balance and account history andoffline rating and dispute history or lack thereof.

In systems where transactions are unable to connect to the backbone, themerchant phone and the buyer phone connect via an ad hoc network. Bothphones keep a record of this transaction and make repeat attempts tosend this information to the backbone. If neither phone can connect tothe backbone, said phones will send an encrypted copy of theirtransaction to a known, trusted device on the network. This trusteddevice serves as a proxy and transmits the copied transaction to thebackbone as soon as it is able to connect.

Some transactions may propagate in multiple paths from the non-connectedarea to the connected area, and third-party delivery may be much fasterthan the user's direct delivery. The multiple propagation paths mayresult not only from how reachable the network service originally was,but also about overloaded services and service availability. Examples ofservice disruption include high-service overload events such as concertsor shows (issues of service overload) and natural disasters (issues ofservice availability), where messages can only send from time to timeinstead of continuously and reliably.

In some cases a system for transacting in an environment withoutconnectivity between a network backbone and a blockchain, a merchantdevice such as a phone or point of sale offers or transmits a set ofcredentials for an ad hoc network to close the transaction (by offeringor transmitting an embedded set of optional ways to connect an ad hocnetwork between a buyer phone and a merchant phone or point of sale),and allows a direct exchange of multiple handshakes to secure thetransaction, Both phones (or the consumer phone and the merchant phoneand/or point of sale) will then keep a record of this transaction andtry at the next opportunity to send this transaction over the networkbackbone to a blockchain. In yet other cases, each time such a client ormerchant devices encounters other known, trusted devices on a P2Pnetwork, they may send an encrypted copy of their mutual transactions tothe trusted devices, thereby enabling the encrypted copy to betransmitted over the network backbone to a blockchain as quickly aspossible via repeated attempts by one or more trusted devices that mayhave better connectivity than the original sending device. A device thatmay or may not have been involved in the actual transaction may transmitthe transaction to the network backbone and propagate it to theblockchain. Furthermore, in some cases, such client and/or merchantdevices may be antitamper-hardened devices.

FIG. 3 is a diagram showing an exemplary system overview 400 of amulti-tiered blockchain database. In some embodiments, the blockchaindatabase maintained for the global database 401, and for each lower tierdatabase 402, 403 would comprise tiers of a single blockchain, but inother embodiments, they would comprise separate blockchains. In certainembodiments, the peer-to-peer networks for the global database 404 andfor each lower tier region 406, 408 might be required to be separate anddistinct (i.e., share no nodes 405, 407, 409), but in other embodimentsmight be allowed to share nodes 405, 407, 409. In some embodiments,there may exist gateway nodes 410, 411 between the global database 401and each lower tier regional database 402, 403 to enforce separation oftransactions in each region of each tier.

The machines that process transactions in these regions can process onlyin their own region, and only fractional transactions. Also, becauseonly fractional transactions of fractional currency occur in theseregions, no currency mining can occur, because no mining is allowed inthese regions. If a user wants to change the currency, the currency isreserved via gateways 410 and 411 and blocked into the ledger in themain region and transferred into the lower region and made available asfractional currency. A small portion of that coin is then allocated tothe operators of the ledger machines in each region, to pay operatingcosts. With no mining occurring in the regions, and with the regionsbeing regionally limited in range, the cost of operation is much lower.Also, the local fractional currency could be, for example, bound to alocal physical currency such as, for example, the U.S. dollar or theEuro, rather than to a cybercurrency such as Bitcoin or Ether, so theremight be a local master currency available, issued by the conversiongateway, such as gateway 410 or 411, which would be paid for by currencyin the upper domain and then actually converted by the gateways into alocal physical currency. Those gateways might act as central banks,rather than as gateways, issuing a fractional currency only, and furtherin these regions there cannot be mining. Thus the transactions arefaster and less vulnerable to currency fluctuations. Additionally, theledgers may be split by years, with the current ledgers containing onlytransaction for the current year or two, and all previous transactionskept in archived ledgers, accessed only if a user has a wallet with anold balance. In such a case, as soon as the user wants to use the oldbalance, the wallet is retrieved from the archive, updated, and removedfrom the archive. Thus archived wallets may take a little longer totransact, but current wallets are much faster, because the ledger iskept current only in the ledger currency. Because the ledgers areregionalized, they can be much smaller and thus process transactionsmuch more quickly. However, being regionalized does not mean a ledger islimited to one country. For example, in North America, each region couldcontain a piece of Canada, the United States, and Mexico. Thus,including multiple jurisdictions could avoid putting a region under thecontrol of just one country. Wallets could simultaneously contain thephysical currency of multiple regions, such as, for example, Euros,dollars, and yen. Most people spend currency in their home region, somerchants could execute transactions much more cheaply, because of thereduced risk of currency fluctuations in most cases.

Further, in some cases, when liquidity runs below a certain level, dueto large outflow, a program or an AI module in the system can take atleast one of several countermeasures: a) it can change exchange rate toreduce outflow, b) it can offer an interest for delaying a conversion,or c) it makes a cash call on certain members of a reserve group toallow a larger reserve to be built up quickly and thus maintainliquidity. This process can be triggered in an automated way by softwareand or an AI supervisory module (not shown) running as part of themanagement software of the system on at least one of the servers or aspart of the EVM system (or similar) or both.

Various embodiments of the present disclosure may be implemented incomputer hardware, firmware, software, and/or combinations thereof.Methods of the present disclosure can be implemented via a computerprogram instructions stored on one or more non-transitorycomputer-readable storage devices for execution by a processor.Likewise, various processes (or portions thereof) of the presentdisclosure can be performed by a processor executing computer programinstructions. Embodiments of the present disclosure may be implementedvia one or more computer programs that are executable on a computersystem including at least one processor coupled to receive data andinstructions from, and to transmit data and instructions to, a datastorage system, at least one input device, and at least one outputdevice. Each computer program can be implemented in any suitable manner,including via a high-level procedural or object- oriented programminglanguage and/or via assembly or machine language. Systems of the presentdisclosure may include, by way of example, both general and specialpurpose microprocessors which may retrieve instructions and data to andfrom various types of volatile and/or non-volatile memory. Computersystems operating in conjunction with the embodiments of the presentdisclosure may include one or more mass storage devices for storing datafiles, which may include: magnetic disks, such as internal hard disksand removable disks; magneto-optical disks; and optical disks. Storagedevices suitable for tangibly embodying computer program instructionsand data (also called the “non- transitory computer-readable storagemedia”) include all forms of non-volatile memory, including by way ofexample semiconductor memory devices, such as EPROM, EEPROM, and flashmemory devices; magnetic disks such as internal hard disks and removabledisks; magneto-optical disks; and CD-ROM disks. Any of the foregoing canbe supplemented by, or incorporated in, ASICs (application-specificintegrated circuits) and other forms of hardware.

In some cases, a cryptocurrency system may include one or moredemarcated sections, or areas, in which transactions are limited tothose of a lesser denomination, with a limited number of ledgertransacting nodes and a limited number of gateways interacting betweenthe general area of unlimited currency and the demarcated area. Suchareas may have a limited-time active ledger, and older transactions aremoved to an archive to speed up new transactions. In such cases, oldwallet entries are then transferred at the time of use to a new sectionof a new ledger. Also, in that demarcated area, no mining is allowed.

Further, in this area, a central issuer, or bank, with a reserve, maystabilize the currency, and currency in this area may be traded at afixed rate to another currency in the same area, which may be a realcurrency rather on a major cryptocurrency. Additionally, in such areas,so called mixer wallets may be blocked or confiscated to avoid misuse offunds for illegitimate purposes.

Demarcated Block Sections

There are two possible methods to closing an active section of theblockchain. One is a pro-active, complete close, the other is a “on thefly, as you go” type close, performed asynchronously, as needed. Bothare discussed below.

FIG. 4 is a diagram showing an exemplary method for improvement toblockchain databases: demarcated block sections 500, in which accountreconciliation may be used to retire or archive older portions of theblockchain, leaving a shorter blockchain as the active portion, andreducing latency times. In the section closing method 510 the oldblockchain 520 is reconciled all at once, and the balances of eachaccount 540 are moved to a new, shorter blockchain 530, and the oldblockchain 520 is archived. For example, when the old blockchain 520 isreconciled, account balance A 521 associated with account W1 541 andaccount balance B 522 associated with account W2 542 are moved to thenew blockchain 530 simultaneously as account balance A 531 and accountbalance B 532, and the old blockchain 520 is archived. In theasynchronous closing method 550, the old blockchain 520 is kept open,but archived. A new blockchain 530 is created, but account balances arenot automatically transferred. Whenever an activity involves an entry inthe old blockchain 520, that entry is consolidated and closed out, andis transferred to the new blockchain 530. For example, entry D 524 hasalready been accessed, closed out, and transferred to the new blockchain530. When entry C 523 associated with account W1 541 is accessed in theold blockchain 520, it will be closed out and transferred to the newblockchain 530. In this manner, the old blockchain 520 will gradually befully consolidated and closed out.

FIG. 5 shows an exemplary multi-tiered blockchain database softwarearchitecture overview, according to an aspect of the invention. Thebasic system 600 would comprise a plurality of user interfaces 601through which users could manage their accounts, a series of contractmanagers 602, one for the global database, and one for each lower tierdatabase, a series of blockchain engines 603, one for each database, anda series of local valuation managers 604 at the lower tiers only, whichserve to fix the exchange rate of tokens within each region within thelower tier databases relative to another valuation in that region.

Two-Tier Coinage

FIG. 6 is a diagram showing an exemplary conceptual framework for amulti-tiered cryptocurrency 700. Tier 1 701 of the multi-tieredcryptocurrency would consist of a global cryptocurrency 702 with traitssimilar to existing cryptocurrencies 703 such as having currencygenerated over time, allowing mining, allowing the cryptocurrency to betraded as a security, and having a floating value. Other currenciescould be exchanged for the global cryptocurrency through traditionalbanking means 704. Tier 2 705 would likely be regional or national inscope. The cryptocurrency at this tier would be converted from theglobal cryptocurrency 702, and would have traits different from existingcryptocurrencies 706 that facilitate small value transactions, such asno mining ability, not tradeable as securities, and value tied to alocal real currency. In one embodiment, one Tier 2 705 cryptocurrencycould be restricted to use in the United States with the value tied tovalue the USD 707 with transactions limited in value and optimized forsmall local transactions such as fast food or gas purchases 708, whileanother Tier 2 705 tier cryptocurrency could be restricted to use inEurope with the value tied to the Euro 709, with transactions limited invalue and optimized for small local transactions such as fast food orgas purchases 710. For clarity and simplicity, only two exemplaryregions are shown, but there could well exist many more. The 1st or “toptier” coin 701 is a generated coin—there will only be a limited numberever minted. It is the primary vehicle for monetary exchange and thesecoins contain all of the value in the system, except what is containedin the locally-valued 2nd Tier coins 705. These 2nd Tier coins 705 arealso generated and are created when money moves into a local currencyand are “destroyed” or invalidated when the money exits the system tothe 1st Tier 701 or is cashed out of the system. The 2nd Tier coin 705is also backed by a local agency or bank to stabilize the value of the2nd Tier country-specific currency. In order to incentivize the localagencies, they will be allowed (under strict guidelines) to hold aportion of the funds in 1st Tier coinage 701 or utilize a portion of thefunds for other activities. They will also have the option of insuringthe value of the currency tied to 2nd Tier coin 705 and charge a fee tothe users for that insurance.

Fees and Revenue

The present invention may charge a small fee every time a coin is moved.FIGS. 7 and 8 are an exchange flow diagrams 800, 900 indicating wherefees may be charged. Referring to FIG. 7, fees may be incurred duringpurchase of 1st Tier coin 801, sale of 1st tier coin 802, andtransferring funds from one wallet to another 803.

FIG. 8 is a diagram showing an exemplary fee and revenue structure 900for a multi-tiered cryptocurrency. Operating revenue for themulti-tiered cryptocurrency would be provided by charging a small feeeach time currency is moved anywhere in the system, including, forexample, purchase of the global cryptocurrency 901 using traditionalcurrencies, sale of the global cryptocurrency 902 back to traditionalcurrencies, conversion of the global cryptocurrency to lower tiercryptocurrencies 903, conversion of a lower tier cryptocurrency back tothe global cryptocurrency 904, payments to merchants using a lower tiercryptocurrency 905, transfers to wallets 906, transfers between wallets907, and transfers from wallets 908.

Single-Use Cryptocurrency

Single-use coin in the 2nd Tier coins enables the control and trackingof currency in a public blockchain with no storage of value. Thesesingle use coins are created then destroyed after redemption, unlikeclassic cryptocurrency where coins have an infinite lifespan. They arealso used for other one-time transactions or other applications wherevalue is held on a one time basis or time-limited. For example, acompany may provide “expiring cash offers”, where a specific amount ofcurrency is credited to a specific individual but expires at a specifictime or because of a specific event. No equivalent of this functionexists within current cryptocurrency solutions. Destruction of thesecoins via Smart Contracts and directly via the blockchain yieldssignificantly enhanced security to this cryptocurrency solution.

Single-Use Cryptocurrency

To provide single-use cryptocurrency capability, the present inventionincludes an expanded address space so it is effectively infinite, whichallows this functionality to work for hundreds of years without runningout of capacity.

FIG. 9 is a diagram showing an exemplary technical improvement toblockchain databases: extended address space 1000. Current blockchainsuse a 256 bit address space 1001. While this is sufficient for existingblockchains with infinite token lifespan (e.g. Bitcoin, Ethereum), 256bits insufficient for use of single use token technology where thecreation and destruction of each coin must be recorded. This wouldsaturate the existing 256-bit address space, degrading performance andeventually rendering the blockchain and cryptocurrrency useless. Thesolution is to use an address space extension 1002, comprised of adescriptive address header 1003, and an n-bit prefix 1004, whicheffectively provides unlimited address space.

Leveraging Standardized Contracts

The present invention includes support for what is known as “SmartContract” functionality, which may be found in core Ethereum, but willalso be released with a number of standardized contract to providebaseline support of some key functionality including coupons, timedescrow (pay after N days), key-based escrow, and other relatedfunctions.

Providing a set of standardized contracts will mitigate the problem ofan exploding world of poorly-written Smart Contracts in the same waycareful design and engineering is required to effectively use storedprocedures in modern databases.

In-Transaction Messaging

The present invention includes support for carefully limited anonymousmessaging in the block chain. It is used to send basic messages betweenboth parties as well as messages to Smart Contracts. It exists only as atext field and cannot be executed directly. This is done in order toeliminate a potential security hole where links and code (such asJavaScript) can be incorporated in messages for nefarious purposes.

Wallet Integrations and Ease-of-Use

The present invention may integrate 1st Tier and 2nd Tier coin withinmany coin wallets, and included an enhanced wallet that allows coinvalue to be moved from 1st Tier and various denominations of 2nd Tiercoins. In addition, the enhanced will allow users to see the value oftheir stored coinage in their native coin value or normalized to thewallet's default currency based on current market prices for coin.

FIG. 14 shows an overview of an exemplary high-performance scalabilitytest configuration, according to one aspect of the system and methoddisclosed herein. Typically, a cluster would run on a cloud system, forexample Amazon Web Service (AWS), so the effort is minimal. By launchinga command, all the instances are automatically created. Next, the usergets access to a control console, such as window 1500. There he can setthe number of nodes 1501 a N(m) by setting value M in the box B (topright)—the system then adjusts the number of nodes appearing on thescreen accordingly. Value M is limited to a “reasonable, feasible” range(cost, performance) in this example. Also, the number of clients 1503 aC(r) may, for a typical test, range from 5-13, but that number can beadjusted by changing value R in the box (top right) within a rangebeyond that. Each client 1503 b adds a certain demand on the network,resulting in a system total transaction throughput that may be measured,for example, by a performance gauge (not shown here), which gauge couldbe like a speedometer showing millions of transactions per second(MTPS). If a node 1501 d is taken off line by a user, or connections areshut off, clients on that node are moved to other nodes 1501 e, 1501 bto keep the system load the same. Users can mouse over a node such as,for example, node 1509 and see a panel with details, allowing a user ortester to shut down a node or turn it back on. The same approach may beapplied for clients 1505 and links in the network, or nodes deeper inthe network 1501 c.

Further, while looking at details of a node, such as node 1509, a usercan click a login information link and open a new window 1506 to seewhat is happening in detail inside the node, for example on theblockchain 1507 a-n. An analogous approach for clients 1505 would resultin multiple additional terminal windows.

FIG. 15 shows an exemplary testing system 1600, according to one aspectof the system and method disclosed herein. System 1600, in this case,encompasses a single local token area 1601, using, in this example, Eurotokens 1604. Further, system 1600 is based on pre-generated accounts(wallets) W1 1602 and W2 1603, and is has a set of pre-generatedtransactions (not shown) to operate on. According to the article“Cryptocurrency Wallet Guide: A Step-By-Step Tutorial,” athttps://blockgeeks.com/guides/cryptocurrency-wallet-guide/, “Acryptocurrency wallet is a software program that stores private andpublic keys and interacts with various blockchain to enable users tosend and receive digital currency and monitor their balance. If you wantto use Bitcoin or any other cryptocurrency, you will need to have adigital wallet.”

For the infrastructure and pre-generated datasets, there would be, forexample, five nodes, at a minimum, in a private Ethereum-based networkin the AWS cloud. Pre-generated ad re-usable datasets could comprise10,000 accounts (wallets), where each wallet holds a random number oftokens between 10 and 1000. In a simplified view such as FIG. 16, forexample, several wallets such as, for example, exemplary wallets W1 1602and W2 1603 are shown in a region 1601 that contains EUR type tokens1604. The proof of scope concept border 1601 is limited to that area,and would, in this example, not include Global tokens 1605, USD tokens1606 or other instrument tokens such as VISA or MC tokens 1607, etc.Wallet A (for example W1) could have N tokens. For each set of 1,000,000transactions, the system would transfer N tokens from wallet A (W1) towallet B W2 or similar via arrow 1608, but not amongst different tokenareas initially.

In the implementation phases, the goal for each phase is to measureperformance. Performance may be defined as N transactions/seconds (TPS),with the TPS stable after M seconds.

In phase one of building such a system, a minimum five-node Ethereumnetwork is established on AWS. Then datasets are pregenerated in adatabase, such as, for example, Mongo database. Programs to generateaccounts and wallets with tokens in Ethereum and to pre-loadtransactions in Ethereum queues without executing them are created.Transaction in out-of-box Ethereum are executed, and performance ismeasured. The test run may be stopped after the

TPS becomes stable. Then the test run and measurements are repeatedusing a 15-node Ethereum network.

In phase two, users would decrease the Ethereum block time to sixseconds, run transactions, and measure performance. Testing would berepeated, decreasing the Ethereum block time further, runningtransactions, and measuring performance, until we the minimum viableblock time is established.

It is expected that Phase 1 and 2 should be completed in 2 weeks fromstart.

Phase three runs in parallel to phases one and two. In phase three, thecrypto puzzle is replaced with alternative puzzles such as a trustpuzzle that is much simple and faster, enabling the TPS to increasedramatically. Transactions are run in iterations, and performance ismeasured.

Phase four requires additional implementation of demarcated blockchains.Again, this phase runs in parallel to phases one and two. Transactionsare run in iterations, and performance is measured.

Phase five comprises establishment of shared blockchains. Again, thisphase runs in parallel to phases one, two, and three. Transactions arerun in iterations, and performance is measured.

FIG. 16 shows a simplified version of an exemplary typical in-countrynetwork 1700, according to one aspect of the system and method known toinventors. Network 1700 includes in-country (or regional) privateblockchain network 1709, which is connected to multiple banks 1701 a-n.Network 1709 may, in some cases, be a virtual network. It also shows anexemplary national bank (NB) 1712 (or regional lead bank), at least one(in some cases more) auditor company or institution (ACI) 1715, and apreferred system provider (PSP) 1705. In some cases, the owner of themaster key can give different auditors different rights, such aslimited-read only rights, limited sections, limited scope or timeaudits, etc. In the example shown in FIG. 17, each bank has at least oneprimary server 1702 a-n. Similarly, PSP 1705 has server 1706, NB 1712has server 1713, and ACI 1715 has server 1716. All these servers areconnected to private blockchain network 1709. Gateways, such as 1717,1714, and 1704 a-n, connect to public Internet 1710, as does gateway1707, which enables the general public to interact with the banks andauditor ACI. Not shown in detail are all the internal firewalls,backups, and additional servers that typically exist. Also, often a bankmay have facilities in multiple locations, and in larger countries orregions banks may have multiple servers in different areas connected inseparate locations to the network for redundancy (also not shown forsimplicity). In some cases, the NB may not want initially to start tobecome active in the currency system, so the PSP may initially hold themaster key for security of the network. In other cases, for legalreasons, the ACI may hold this key, as a legal, local entity. Once theNB feels comfortable taking on a leading role, it can request or legallydemand the master key and house it on their servers henceforth.Additionally, upper network 1711 is for international transactions. Ithas separate gateways 1703 a-n in each bank, as well as gateway 1708 forpreferred provider 1705. In this example, national bank 1712 and auditor1715 do not have a connection to upper network 1711, since they don'tengage in international transactions on network 1711 for the upper leveltoken. In other cases, they may participate as well.

FIG. 17 shows an exemplary network 1800, according to one aspect of thesystem and method disclosed herein. In addition to the national andinternational networks shown in FIG. 17, described above, an exemplaryclassic network is present, comprising clouds 1801 a-n, such as existingIBAN, ACH, SWIFT, and other existing international transfer networks forinterbank transfers, both national and international, typically socalled real time gross settlement (RTGS) networks. These RTGS networks1804 a-n can be integrated into such a system with gateways in eachseparate bank 1803 a, 1803 b, 1803 n, including one gateway for anational or regional lead bank 1802, so they can complement the moneyflow.

Further, digital (token) wallets for this multi-bank retail blockchain(not shown) can enable, via API, integration of existing banking appsand wallet apps, so a user can operate all his accounts and transactionsfrom one location.

FIG. 18 shows an exemplary system 1900 connecting banks, customers, andclearing houses, according to one aspect of the system and methoddisclosed herein. Banks 1901 athrough 1901 n are connected to a RealTime Gross Settlement (RTGS) network 1910 that is connected, in thisexample, to central bank 1911 but other RTGS systems may also exist andmay be connected to those and other banks. Central bank 1911 may haveattached nostro/vostro accounts 1912 a-n. Each bank may have aconnection 1906 a-n to blockchain 1906, to which may be attached tocustomer handsets 1904 a through 1904 n via connections 1903 a through1903 n.

Further, each handset may contain software 1905 aa-n through 1905 na-n.In this example, this software includes an operating system, otherapplications, and the application to operate the bank account on theblockchain, for the purpose of making transfers and othermoney-management operations.

As money is moved among various different banks on the blockchain,typically by users transacting on the above-mentioned handsets acting asmobile wallets, money between the FIAT pools 1902 a through 1902 n needsto be moved between banks periodically to reflect the motion of tokenson the blockchain, either because the difference between tokens and FIATbetween banks has grown too large, during or at the end of the day. Suchmoves are typically done through the RTGS network 1910. However,currently in the United States, the federal reserve shuts down suchactivities at night, during the weekend, and on holidays. In many othercountries RTGS systems shut down in similar manner as in the UnitedStates. Thus, during such periods of enforced inactivity, a largeimbalance may occur, and there is even the theoretical possibility of abank becoming illiquid because more money has gone out than the bankowns. As an alternative solution, central bank 1911 may keep an account,such as account 1913, open at all times, 24/7/365, as well as operate atleast part of RTGS 1910 accordingly. Or, if the bank is unwilling tooperate around the clock, the central bank may hold the FIAT money inaccounts such as account 1913, during hours of inactivity, and updatethe FIAT pools correctly at the next instance of activity based on thestatus reported from blockchain. Alternatively, at least one clearinghouse, such as clearing house 1921 (only one shown), may keep a specialaccount, such as account 1922 (only one shown), open during the hourswhen banks are not open, that is, nights, weekends, holidays, or as anormal transaction vehicle for FIAT transactions among banks. In thatcase, banks would transfer, for example, all their balances every 10or15 minutes, or even every 5 minutes, depending on their volume,frequency of transactions, imbalances, and other triggers as desired orrequired, into or from the clearing house. Thus the clearing house playsthe role of a trusted third party, similar to the central bank, as theclearing house has relationships 1920 with most, if not all, banks, andis a trusted, licensed player in the banking system. A clearing housecan take over this role easily, and most clearing houses today operate24/7/365, because they have this transaction capability for the stockexchanges. Hence, they can offer, for a small fee, to do FIATtransactions for the banks. These transaction can be done in a singleaccount or they could be done as subaccounts for each bank, in whichcase the clearing could happen locally. Thus the balances could bealways reflected correctly, 24/7, and FIAT balances could be operatedcorrectly, no matter whether the central bank is available or not. Inplaces where there is no central bank and no clearing houses, a thirdparty could be used to provide clearing bank services. In some cases,these FIAT transaction could be operated over the blockchain networkrather than over the regular RTGS network.

In some cases, banks linked in a private network, which in some casesmay be a virtual private network, may participate in transactions madeon behalf of their retail customers on a retail-oriented blockchain. Inaddition, a supervisory bank or agency may participate in this privatenetwork, so that in certain cases this supervisory party may exert itssupervisory power under a contractual agreement. These banks may alsoparticipate in a second private network for blockchain transactions,which network may be used for interbank and international transactions.Furthermore, a preferred Internet provider may be connected to thebanks' private network. This provider may hold the master securitycertificate for operating the private network, or it may transfer themaster security certificate to the supervisory bank or agency, thusmaking the recipient of the master certificate the future provider ofthe master security certificate. In other cases, a non-transactingauditor may also connected to the private network. The holder of themaster key may be located in the private network, linked with its owncomputing device on the blockchain, enabling auditors to have variouslevels of access rights, including but not limited to section-limited,read-only limited, time- or time-period limited, etc. access to theblockchain via certificate and network access for audit and reviewpurposes under a contractual agreement.

In a system where payments are done using tokens representing acurrency, these tokens may be transacted on a blockchain and sometimesmoved among banks, possibly resulting in an imbalance of bank FIATaccounts. In such cases, from time to time one or more banks may requirea transfer on an RTGS system to correct a such an imbalance. In thosecases where said RTGS system is not available during hours ofnon-operation, banks may move the RTGS transfer to a clearing house thatis operational non-stop without any breaks, thus enabling settlements atany time of any day of the year. In some cases, to avoid complicatedtransfers of operations, such operations may always run via a clearinghouse. Further, the transfers to the clearing house are operated usingthe block chain network, to avoid any limitation of the RTGS time ofoperation. Additionally, should a particular bank's available balance onits FIAT account drop below a preset threshold, either the central bankor another pre-agreed partner will automatically launch an infusion ofadditional FIAT funds into the bank's account to maintain sufficientliquidity. Alternatively, rather than depending on a preset threshold,an AI system may be used to calculate the level upon which such aninfusion is made, and also to calculate the required size of theinfusion to stabilize the bank. In all such cases, one or more personsor institutions are notified at or shortly before such an event.

In various aspects, functionality for implementing systems or methods ofvarious aspects may be distributed among any number of client and/orserver components. For example, various software modules may beimplemented for performing various functions in connection with thesystem of any particular aspect, and such modules may be variouslyimplemented to run on server and/or client components.

Referring generally to FIG. 19, in which an enhanced system and methodof conducting international trading transactions is shown and comparingto the example described in the Background section, a new exampleanalogous to example 1 will illustrate the benefits of a novel aspect.In this case, the issue is trading spot US$ and Liquineq Global tokens(LG; note this is exemplary, and other crypto tokens could be tradedaccording to the aspect) to euros (€),as a spread with only 1 bid/ask:

1—Trader A 2001 sells US$ 2002 and buys L-US$ 2004 1 to 1 no bid/askcrossed 2&3—Trader A Sells L-US$ & buys LG 2003 and as part of the sametrade with the same counterparty sells LG and buys L-euro (L€), all asone spread trade.

In the example, The LGs either net out as they trade, or they act as ahedge of the L currencies at the same price for the buy and sell. Any“know your customer” (KYC) or other regulatory certificates are added asnecessary into the transaction.

In those cases where there are regulatory issues with the LGs needing tobe actually transferred rather than netted, traders would need toinventory a small amount of LG to facilitate these spread trades.

In this system for transacting multiple payment tokens on a blockchain,it has at least one processor, but typically many more, often in thecloud, or in different location for redundancy and security. Applicationsoftware running on that system (meaning on at least one of theprocessors) allows one to perform the steps of a transaction consistingof listing a first trader buying an intermediary token with a firstcurrency with the intent to buy a second currency, finding at least onesecond trader willing to sell a matching amount of said second currencysought by first trader against said intermediary token, and once a pricehas been agreed upon, a transaction is closed. Further, in some cases,the step of the intermediary token is explicit. Furthermore, in othercases the step of the intermediary token is eliminated after theregulatory needs have been met. In yet other cases after the transactioncloses the intermediary token in immediately re-used in a newtransaction thereafter.

FIG. 20 shows a simplified diagram of a cold storage facility or bankthat can be used to store crypto currencies to make quick raids moredifficult, according to an aspect. According to the aspect, 2101 a . . .n are at least one, often many un-permissioned blockchains of thedifferent cryptocurrencies; 2102 a . . . n for example are airgapswitches with buffers (other equivalent systems and methods ofinsulation can be used), that can be used to allow selectively contentfrom a wallet to be transferred via a buffer into cold storage unit 2103aa . . . nn, which has many addressable compartments at least one foreach customer 2105.

FIG. 21 shows a simplified diagram of a novel approach how to enableusage while crypto currencies are in cold storage, according to anembodiment. It shows an inventory management section 2201, which helpsreview and manage the content of cold storage 2103 aa . . . nn. Thatinformation can be used by eToken issuance section 2202 to issue forthose cryptocoins that the users have allowed eTokens, that can be usedfor all practical purposes like real cryptocurrencies, but much fasterand more securely. To do that, user management section 2203 allows thosetokens to be sent to the correct user wallets such as exemplary userwallet 2204 x, which shares connection to the unpermissioned blockchain2205 along with possible other wallets 2204 h and allows them to be usedlike regular eMoney in real time, with fast settlement; but, rather thanbeing backed by fiat money, this one is back by cryptocurrency. Afterthe transactions are completed, the cryptos can be settled cold storageto cold storage, without putting the real cryptos at any peril or delaysfor settlement.

FIG. 22 shows a simplified diagram of a software used to take cryptosinto a novel type cold storage that allows for continued use of storedcrypto currencies. After initiating the process 2301, as part of a firstoperational step 2302 the wallet is selected from which the crypto isdeposited. In step 2303 the process of passing through the airgap switchinto cold storage is performed, and the information is noted in generalstorage 2304, which is part of inventory management 2201 describedearlier. The user now can choose if to just store (draw e-crypto) instep 2305 (no) or use e-crypto (yes). In first case the flow continuesto 2308 to end. In latter case it continues to 2306 to issue a matchingnumber of e-cryptos (or in some cases only partial amount). In step 2307those cryptos are then moved via user management 2203 to the userswallet. It then ends in step 2308.

Once the user spends his e-cryptos, full or fractional crypto tokens aresettled via the non-permissioned blockchains with the respectiveparties. Since the user had to use his more secure wallet, onlyauthorized transactions will be enabled and cleared.

FIG. 25 is a diagram illustrating an automotive inventory management andrecordkeeping process flow for car manufacturing. During manufacture ofan automobile by any of a number of suppliers 2610, 2611, 2612, 2613,either by a single supplier or by a plurality of such suppliers, eachpartial software revision is assigned a unique token by BOM 2620. Thesetokens, representing the parts, processes, and entities involved in thevehicle's production, are logged to a blockchain 2630 that may containtens of thousands of items to adequately document the vehicle's recordin an immutable wallet. This blockchain is then associated with thevehicle's assigned vehicle identification number (VIN) 2670, whichincorporated the vehicle's manufacturer 2640, geographical 2650, andmodel 2660 information into an encoded string. This produces auniquely-identifiable VIN for each vehicle that is now paired with aunique blockchain that describes the vehicle's manufacture in detail andcannot be altered, which provides the basis for a number ofblockchain-based new methods such as for validating and recordingvehicle repairs or maintenance (as described below, in FIG. 26).

FIG. 26 is a diagram illustrating an automotive inventory management andrecordkeeping process flow for car maintenance. Using a “know yourowner/technician/repair” (KYO, KYT, KYR, respectively) system, newowners 2710, technicians 2711, dealers, or independent repair shops 2712must identify themselves to receive a blockchain wallet (generally byproviding a photograph of a legal ID, or a “selfie” photograph, as wellas providing relevant information to assist in identification). Onceidentified, a wallet is issued and permanently associated with theentity (technician, repair shop, owner, manufacturer, dealer, etc).Using this wallet, every action is signed by the appropriateowner/technician/shop/entity and stored in an immutable blockchain-basedledger, providing an indelible record of service and other operations.

Parts and service orders may also be logged into a blockchain wallet,for example brake parts 2721 may be logged with unique tokens andsoftware version, for example identified using RFID or other connectedtechnologies (as are already commonplace in inventory management,minimizing onboarding costs). When brake service is needed, a smartcontract 2720 is formed that incorporates the tokens for the parts andcannot be completed without the appropriate signatures (and thus,matching/verifying blockchain software revisions) with all relevantentities, ensuring that the order is fulfilled and all relevant partiesremain informed at every step. The service contract 2720 is associatedwith a blockchain 2630 for the vehicle 2701 or VIN, which may becompared against a regional blockchain 2730 that contains all known VINblockchains to verify the vehicle's blockchain. A regional blockchainmay be a country-specific blockchain 2730 or it may be a smallerregional designation, or even a global or multinational blockchain.

In some embodiments, the system will contain a variety of differentwallet types for different users and/or purposes, including a technicianwallet, commercial wallet, manufacturer wallet, and an end-user wallet,although other wallet types are possible if necessary. These walletsrepresent access to a digital wallet that is acknowledged by a givenblockchain network as having access or ownership over certain tokens,and which may be used for many different purposes depending on theblockchain implementation.

A technician wallet may provide a unique token for every part orsoftware version, and a technician must acquire the part token for amaintenance request or repair, and then deposit this token into thecar's wallet and thus the VIN blockchain 2630. This creates a direct,1-to-1 association between the technician's wallet and any work thetechnician performs on any vehicles.

A commercial wallet may be used by dealers, aftermarket suppliers, orrepair shops, and provides for commercial token handling and monitoring.Specific instances of a commercial wallet (such as for a repair shoprather than a dealer or distributor) may be created from the same basewallet template, modifying only the configuration to tailor it to theparticular service or use case.

A manufacturer wallet, used by automobile manufacturers, providesfurther commercial management and monitoring of tokens and records, suchas the ability to retire tokens and manage previously-retired tokenrecords.

An end-user wallet may be used by vehicle owners, and enables them toreview all installed options in their vehicle, repair and servicerecords, or any other historical records associated with their vehicle.Used cars may be represented using a scoring system, providing anumerical representation of part quality and actual maintenance done tothe vehicle, thus providing an improvement to existing VIN and titlerecords that may be incomplete or inaccurate.

A key system may be utilized to control what entities have access towhat information in a wallet, enabling a user to take control of theirpersonal data and manage access control.

Hardware Architecture

Generally, the techniques disclosed herein may be implemented onhardware or a combination of software and hardware. For example, theymay be implemented in an operating system kernel, in a separate userprocess, in a library package bound into network applications, on aspecially constructed machine, on an application-specific integratedcircuit (ASIC), or on a network interface card.

Software/hardware hybrid implementations of at least some of the aspectsdisclosed herein may be implemented on a programmable network-residentmachine (which should be understood to include intermittently connectednetwork-aware machines) selectively activated or reconfigured by acomputer program stored in memory. Such network devices may havemultiple network interfaces that may be configured or designed toutilize different types of network communication protocols. A generalarchitecture for some of these machines may be described herein in orderto illustrate one or more exemplary means by which a given unit offunctionality may be implemented. According to specific aspects, atleast some of the features or functionalities of the various aspectsdisclosed herein may be implemented on one or more general-purposecomputers associated with one or more networks, such as for example anend-user computer system, a client computer, a network server or otherserver system, a mobile computing device (e.g., tablet computing device,mobile phone, smartphone, laptop, or other appropriate computingdevice), a consumer electronic device, a music player, or any othersuitable electronic device, router, switch, or other suitable device, orany combination thereof. In at least some aspects, at least some of thefeatures or functionalities of the various aspects disclosed herein maybe implemented in one or more virtualized computing environments (e.g.,network computing clouds, virtual machines hosted on one or morephysical computing machines, or other appropriate virtual environments).

Referring now to FIG. 10, there is shown a block diagram depicting anexemplary computing device 10 suitable for implementing at least aportion of the features or functionalities disclosed herein. Computingdevice 10 may be, for example, any one of the computing machines listedin the previous paragraph, or indeed any other electronic device capableof executing software- or hardware-based instructions according to oneor more programs stored in memory. Computing device 10 may be configuredto communicate with a plurality of other computing devices, such asclients or servers, over communications networks such as a wide areanetwork a metropolitan area network, a local area network, a wirelessnetwork, the Internet, or any other network, using known protocols forsuch communication, whether wireless or wired.

In one aspect, computing device 10 includes one or more centralprocessing units (CPU) 12, one or more interfaces 15, and one or morebusses 14 (such as a peripheral component interconnect (PCI) bus). Whenacting under the control of appropriate software or firmware, CPU 12 maybe responsible for implementing specific functions associated with thefunctions of a specifically configured computing device or machine. Forexample, in at least one aspect, a computing device 10 may be configuredor designed to function as a server system utilizing CPU 12, localmemory 11 and/or remote memory 16, and interface(s) 15. In at least oneaspect, CPU 12 may be caused to perform one or more of the differenttypes of functions and/or operations under the control of softwaremodules or components, which for example, may include an operatingsystem and any appropriate applications software, drivers, and the like.

CPU 12 may include one or more processors 13 such as, for example, aprocessor from one of the Intel, ARM, Qualcomm, and AMD families ofmicroprocessors. In some aspects, processors 13 may include speciallydesigned hardware such as application-specific integrated circuits(ASICs), electrically erasable programmable read-only memories(EEPROMs), field-programmable gate arrays (FPGAs), and so forth, forcontrolling operations of computing device 10. In a particular aspect, alocal memory 11 (such as non-volatile random access memory (RAM) and/orread-only memory (ROM), including for example one or more levels ofcached memory) may also form part of CPU 12. However, there are manydifferent ways in which memory may be coupled to system 10. Memory 11may be used for a variety of purposes such as, for example, cachingand/or storing data, programming instructions, and the like. It shouldbe further appreciated that CPU 12 may be one of a variety ofsystem-on-a-chip (SOC) type hardware that may include additionalhardware such as memory or graphics processing chips, such as a QUALCOMMSNAPDRAGON™ or SAMSUNG EXYNOS™ CPU as are becoming increasingly commonin the art, such as for use in mobile devices or integrated devices.

As used herein, the term “processor” is not limited merely to thoseintegrated circuits referred to in the art as a processor, a mobileprocessor, or a microprocessor, but broadly refers to a microcontroller,a microcomputer, a programmable logic controller, anapplication-specific integrated circuit, and any other programmablecircuit.

In one aspect, interfaces 15 are provided as network interface cards(NICs). Generally, NICs control the sending and receiving of datapackets over a computer network; other types of interfaces 15 may forexample support other peripherals used with computing device 10. Amongthe interfaces that may be provided are Ethernet interfaces, frame relayinterfaces, cable interfaces, DSL interfaces, token ring interfaces,graphics interfaces, and the like. In addition, various types ofinterfaces may be provided such as, for example, universal serial bus(USB), Serial, Ethernet, FIREWIRE™, THUNDERBOLT™, PCI, parallel, radiofrequency (RF), BLUETOOTH™, near-field communications (e.g., usingnear-field magnetics), 802.11 (WiFi), frame relay, TCP/IP, ISDN, fastEthernet interfaces, Gigabit Ethernet interfaces, Serial ATA (SATA) orexternal SATA (ESATA) interfaces, high-definition multimedia interface(HDMI), digital visual interface (DVI), analog or digital audiointerfaces, asynchronous transfer mode (ATM) interfaces, high-speedserial interface (HSSI) interfaces, Point of Sale (POS) interfaces,fiber data distributed interfaces (FDDIs), and the like. Generally, suchinterfaces 15 may include physical ports appropriate for communicationwith appropriate media. In some cases, they may also include anindependent processor (such as a dedicated audio or video processor, asis common in the art for high-fidelity AN hardware interfaces) and, insome instances, volatile and/or non-volatile memory (e.g., RAM).

Although the system shown in FIG. 10 illustrates one specificarchitecture for a computing device 10 for implementing one or more ofthe aspects described herein, it is by no means the only devicearchitecture on which at least a portion of the features and techniquesdescribed herein may be implemented. For example, architectures havingone or any number of processors 13 may be used, and such processors 13may be present in a single device or distributed among any number ofdevices. In one aspect, a single processor 13 handles communications aswell as routing computations, while in other aspects a separatededicated communications processor may be provided. In various aspects,different types of features or functionalities may be implemented in asystem according to the aspect that includes a client device (such as atablet device or smartphone running client software) and server systems(such as a server system described in more detail below).

Regardless of network device configuration, the system of an aspect mayemploy one or more memories or memory modules (such as, for example,remote memory block 16 and local memory 11) configured to store data,program instructions for the general-purpose network operations, orother information relating to the functionality of the aspects describedherein (or any combinations of the above). Program instructions maycontrol execution of or comprise an operating system and/or one or moreapplications, for example. Memory 16 or memories 11, 16 may also beconfigured to store data structures, configuration data, encryptiondata, historical system operations information, or any other specific orgeneric non-program information described herein.

Because such information and program instructions may be employed toimplement one or more systems or methods described herein, at least somenetwork device aspects may include nontransitory machine-readablestorage media, which, for example, may be configured or designed tostore program instructions, state information, and the like forperforming various operations described herein. Examples of suchnontransitory machine- readable storage media include, but are notlimited to, magnetic media such as hard disks, floppy disks, andmagnetic tape; optical media such as CD-ROM disks; magneto-optical mediasuch as optical disks, and hardware devices that are speciallyconfigured to store and perform program instructions, such as read-onlymemory devices (ROM), flash memory (as is common in mobile devices andintegrated systems), solid state drives (SSD) and “hybrid SSD” storagedrives that may combine physical components of solid state and hard diskdrives in a single hardware device (as are becoming increasingly commonin the art with regard to personal computers), memristor memory, randomaccess memory (RAM), and the like. It should be appreciated that suchstorage means may be integral and non-removable (such as RAM hardwaremodules that may be soldered onto a motherboard or otherwise integratedinto an electronic device), or they may be removable such as swappableflash memory modules (such as “thumb drives” or other removable mediadesigned for rapidly exchanging physical storage devices),“hot-swappable” hard disk drives or solid state drives, removableoptical storage discs, or other such removable media, and that suchintegral and removable storage media may be utilized interchangeably.Examples of program instructions include both object code, such as maybe produced by a compiler, machine code, such as may be produced by anassembler or a linker, byte code, such as may be generated by forexample a JAVA™ compiler and may be executed using a Java virtualmachine or equivalent, or files containing higher level code that may beexecuted by the computer using an interpreter (for example, scriptswritten in Python, Perl, Ruby, Groovy, or any other scripting language).

In some aspects, systems may be implemented on a standalone computingsystem. Referring now to FIG. 11, there is shown a block diagramdepicting a typical exemplary architecture of one or more aspects orcomponents thereof on a standalone computing system.

Computing device 20 includes processors 21 that may run software thatcarry out one or more functions or applications of aspects, such as forexample a client application 24. Processors 21 may carry out computinginstructions under control of an operating system 22 such as, forexample, a version of MICROSOFT WINDOWS™ operating system, APPLE macOS™or iOS™ operating systems, some variety of the Linux operating system,ANDROID™ operating system, or the like. In many cases, one or moreshared services 23 may be operable in system 20, and may be useful forproviding common services to client applications 24. Services 23 may forexample be WINDOWS™ services, user-space common services in a Linuxenvironment, or any other type of common service architecture used withoperating system 21. Input devices 28 may be of any type suitable forreceiving user input, including for example a keyboard, touchscreen,microphone (for example, for voice input), mouse, touchpad, trackball,or any combination thereof. Output devices 27 may be of any typesuitable for providing output to one or more users, whether remote orlocal to system 20, and may include for example one or more screens forvisual output, speakers, printers, or any combination thereof. Memory 25may be random-access memory having any structure and architecture knownin the art, for use by processors 21, for example to run software.Storage devices 26 may be any magnetic, optical, mechanical, memristor,or electrical storage device for storage of data in digital form (suchas those described above, referring to FIG. 10). Examples of storagedevices 26 include flash memory, magnetic hard drive, CD-ROM, and/or thelike.

In some aspects, systems may be implemented on a distributed computingnetwork, such as one having any number of clients and/or servers.Referring now to FIG. 12, there is shown a block diagram depicting anexemplary architecture 30 for implementing at least a portion of asystem according to one aspect on a distributed computing network.According to the aspect, any number of clients 33 may be provided. Eachclient 33 may run software for implementing client-side portions of asystem; clients may comprise a system 20 such as that illustrated inFIG. 11. In addition, any number of servers 32 may be provided forhandling requests received from one or more clients 33. Clients 33 andservers 32 may communicate with one another via one or more electronicnetworks 31, which may be in various aspects any of the Internet, a widearea network, a mobile telephony network (such as CDMA or GSM cellularnetworks), a wireless network (such as WiFi, WiMAX, LTE, and so forth),or a local area network (or indeed any network topology known in theart; the aspect does not prefer any one network topology over anyother). Networks 31 may be implemented using any known networkprotocols, including for example wired and/or wireless protocols.

In addition, in some aspects, servers 32 may call external services 37when needed to obtain additional information, or to refer to additionaldata concerning a particular call. Communications with external services37 may take place, for example, via one or more networks 31. In variousaspects, external services 37 may comprise web-enabled services orfunctionality related to or installed on the hardware device itself. Forexample, in one aspect where client applications 24 are implemented on asmartphone or other electronic device, client applications 24 may obtaininformation stored in a server system 32 in the cloud or on an externalservice 37 deployed on one or more of a particular enterprise's oruser's premises.

In some aspects, clients 33 or servers 32 (or both) may make use of oneor more specialized services or appliances that may be deployed locallyor remotely across one or more networks 31. For example, one or moredatabases 34 may be used or referred to by one or more aspects. Itshould be understood by one having ordinary skill in the art thatdatabases 34 may be arranged in a wide variety of architectures andusing a wide variety of data access and manipulation means. For example,in various aspects one or more databases 34 may comprise a relationaldatabase system using a structured query language (SQL), while othersmay comprise an alternative data storage technology such as thosereferred to in the art as “NoSQL” (for example, HADOOP CASSANDRA™,GOOGLE BIGTABLE™, and so forth). In some aspects, variant databasearchitectures such as column-oriented databases, in-memory databases,clustered databases, distributed databases, or even flat file datarepositories may be used according to the aspect. It will be appreciatedby one having ordinary skill in the art that any combination of known orfuture database technologies may be used as appropriate, unless aspecific database technology or a specific arrangement of components isspecified for a particular aspect described herein. Moreover, it shouldbe appreciated that the term “database” as used herein may refer to aphysical database machine, a cluster of machines acting as a singledatabase system, or a logical database within an overall databasemanagement system. Unless a specific meaning is specified for a givenuse of the term “database”, it should be construed to mean any of thesesenses of the word, all of which are understood as a plain meaning ofthe term “database” by those having ordinary skill in the art.

Similarly, some aspects may make use of one or more security systems 36and configuration systems 35. Security and configuration management arecommon information technology (IT) and web functions, and some amount ofeach are generally associated with any IT or web systems. It should beunderstood by one having ordinary skill in the art that anyconfiguration or security subsystems known in the art now or in thefuture may be used in conjunction with aspects without limitation,unless a specific security 36 or configuration system 35 or approach isspecifically required by the description of any specific aspect.

FIG. 13 shows an exemplary overview of a computer system 40 as may beused in any of the various locations throughout the system. It isexemplary of any computer that may execute code to process data. Variousmodifications and changes may be made to computer system 40 withoutdeparting from the broader scope of the system and method disclosedherein. Central processor unit (CPU) 41 is connected to bus 42, to whichbus is also connected memory 43, nonvolatile memory 44, display 47,input/output (I/O) unit 48, and network interface card (NIC) 53. I/Ounit 48 may, typically, be connected to keyboard 49, pointing device 50,hard disk 52, and real-time clock 51. NIC 53 connects to network 54,which may be the Internet or a local network, which local network may ormay not have connections to the Internet. Also shown as part of system40 is power supply unit 45 connected, in this example, to a mainalternating current (AC) supply 46. Not shown are batteries that couldbe present, and many other devices and modifications that are well knownbut are not applicable to the specific novel functions of the currentsystem and method disclosed herein. It should be appreciated that someor all components illustrated may be combined, such as in variousintegrated applications, for example Qualcomm or Samsungsystem-on-a-chip (SOC) devices, or whenever it may be appropriate tocombine multiple capabilities or functions into a single hardware device(for instance, in mobile devices such as smartphones, video gameconsoles, in-vehicle computer systems such as navigation or multimediasystems in automobiles, or other integrated hardware devices).

FIG. 2 shows an exemplary overview of a standard cloud computinginfrastructure, according to an aspect. Server 302 may be a singlephysical server, or it may be a cluster 303 of many smaller servers 304a-n. These servers can contain multiple sets of codes 305 a-n, includingmultiple operating systems, on top of which may be multiple applications306 a-n and additional multiple data sets for storage 307 a-n. Clientcomputing devices 310 and 311, as well as desktop device 312, connect toserver 302 via Internet 301. Functionally a desktop computer is verysimilar to a smart phone, except that the relationship betweenperformance and display and operating system, etc. is different, and adesktop computer has typically a much larger display. Also, in server302, whether a single server or a cluster, each node is just aspecialized version of generic computing device 200. Cloud computerarrangement 300 enables applications to cooperate between one or more ofthe client devices and the cloud, where some functionality is performedin the cloud and some is on the device. Further, it may not always beclear what operations are being done where, and operation locations varyfrom situation to situation, as well as varying according thecapabilities of the computing device used.

In some embodiments, lower tier valuations may be in the form of digitalchecks (for example, cashier's checks issued by a bank or similarinstitution), which can be retired at the end of a redemption cycle. Theadvantage of this particular approach is that in most jurisdictionschecks can be used without additional approvals, as checks are alreadypermitted, and a digital, encrypted form should be recognized as valid.Further, as they are submitted in real-time on the blockchain, the riskof falsified checks is much reduced, and as they are only retired andnot destroyed, an already cashed check can be immediately be identified(respectively its token on the blockchain). Such checks could bedenominated in multiple currencies or asset types, as is allowabletoday.

In various aspects, functionality for implementing systems or methods ofvarious aspects may be distributed among any number of client and/orserver components. For example, various software modules may beimplemented for performing various functions in connection with thesystem of any particular aspect, and such modules may be variouslyimplemented to run on server and/or client components.

In some use cases, certain countries may have export industries, oftenbut not exclusively related to mineral commodities that overshadow therest of the economy, which can cause undesired appreciation of thedomestic currency. This appreciation of the domestic currency can makeit difficult to export other goods and services, as they are often notrelated to those commodities but cannot be competitively priced due tothe currency issues. By isolating the commodity business with aseparate, internationally trade-able crytocurrency, in some cases alsomineable, the effect of the commodity on the rest of the economy can beminimized, as only a part of the profits need to be re-patriated, whereas the rest can be invested globally without negatively affecting thelocal economy. In some instances of this use case, an exporter countrymay create an additional currency as a weighted basket targeting its twoor three primary export market countries' currencies as the main weight,thus stabilizing the prize of its commodity for its customers, and maybeadding the currency of a main supplier country or two for capitalequipment for extraction or processing that export item as well.

In another use case, the system could be used by automobilemanufacturers to securely track the thousands of parts and hundreds ofsoftware updates associated with each individual car manufactured.Modern cars have on the order of 100 different embedded computersystems, each of which can be updated with different versions, updates,and patches. In addition, parts are often updated or replaced by themanufacturer over time for certain models (a particular case of this isrecalls of certain parts), and the current version of such parts foreach individual car can be tracked.

In another use case, the system could be used to securely track voting.Tracking voting in distributed immutable system assures highest votingintegrity and provides each individual an immutable voting receipt.

In another use case, food could be securely tracked from grower tosupermarket for all packaged goods. In the case of food poisoning, allsources of the food could be immediately identified.

In another use case, pharmaceuticals could be securely tracked frommanufacturing to end user. This would have tremendous benefits inavoiding theft, inappropriate use, and counterfeit drugs.

In another use case, prescriptions could be securely tracked fromprescribing doctor to patient. Today, patient information is totallyexposed to any pharmacy technician. HIPPA violations are common. Usingprivate certificates and immutable distributed ledgers would protectpharmacies from HIPPA violations and reduce or eliminate the possibilityof prescription drug abuse.

In another use case, car parts could be securely tracked from originatorto installer, reducing or eliminating the possibility of used partsbeing sold as new.

In another use case, the effectiveness of advertisements could besecurely tracked, especially on internet-connected devices such ascomputers, smartphones, smart TVs, and set top boxes.

In another use case, intellectual property of all kinds (songs, movies,pictures, patents, trademarks, copyrights, etc.) could be securelytracked and infringing use immediately identified, as well as theidentity of the infringer.

In another use case, product scheduled maintenance and maintenancecorrectness could be securely tracked for each and every part of everyindividual piece of equipment. This is important for consumer goods(cars, refrigerators, lawnmowers, etc.), and is critical for commercialequipment (airplanes, trains, construction equipment, elevators, etc.).

In another use case, the system could be used to replacegovernment-issued identification cards and numbers such as driver'slicenses, social security numbers, etc.

In another use case, the system could be used to issue and trackinsurance policies with incident tracking and payout tracking.

In another use case, the system could be used to securely submit andtrack documents such as tax returns, real estate recordings, courtdocuments, and other government records.

In another use case, the system could be used to securely track paymentsfrom large scale programs such as Social Security payments, SocialSecurity Disability payments, food stamps, etc.

The skilled person will be aware of a range of possible modifications ofthe various aspects described above. Accordingly, the present inventionis defined by the claims and their equivalents.

What is claimed is:
 1. A system for automotive inventory management and recordkeeping using multi-tiered distributed network transactional database, comprising: a blockchain network comprising at least a processor, a memory, and programming instructions stored in the memory and operable on the processor, wherein the programming instructions, when operating on the processor, cause the processor to: operate a blockchain network without security provisions; wherein the blockchain network is accessible only with permission from a blockchain provider; execute a smart contracts using a plurality of specialized blockchain nodes; contained within the blockchain network; operate at least one smart contract pricing node for the purpose of assisting smart contracts with executing by routing record and contract requests to the correct nodes on the blockchain; operate long-life tokens within the blockchain that may last indefinitely; operate short-life tokens within the blockchain which may last until a predetermined termination prerequisite is met; allow multiple blockchain implementations to be utilized with differing settings, variable node types, and token types; facilitate token transferal transactions within the blockchain; facilitate smart contract transactions and transferals within the blockchain; and facilitate the use of pre-compiled code to be implemented as a predefined contract within the blockchain; wherein the smart contracts is executed based on a plurality of variable node types; wherein each of the plurality of variable node types allows or disallows specific transaction types to be written to the blockchain utilizing predefined node rules; a technician wallet comprising at least a processor, a memory, and programming instructions stored in the memory and operable on the processor, wherein the programming instructions, when operating on the processor, cause the processor to: maintain and keep track of a plurality of unique tokens for records of parts or components of vehicles; maintain and keep track of a plurality of unique tokens for records of software and software versions of components of vehicles; allow the owner of the technician wallet to transfer a vehicle component token or software token to a vehicle wallet; a commercial wallet comprising at least a processor, a memory, and programming instructions stored in the memory and operable on the processor, wherein the programming instructions, when operating on the processor, cause the processor to: contain and maintain a plurality of tokens for vehicles, vehicle components, and software related to vehicles or vehicle components; allow transference of maintained tokens to a technician's wallet; allow for monitoring of token deposition and withdrawal from the commercial wallet; a manufacturer wallet comprising at least a processor, a memory, and programming instructions stored in the memory and operable on the processor, wherein the programming instructions, when operating on the processor, cause the processor to: create new tokens for completed vehicles, or vehicle components, or vehicle software, or component software, including records for data for such, or any combination of these tokens; issue the newly created tokens to a commercial wallet at the manufacturer wallet administrator's discretion; an end user wallet comprising at least a processor, a memory, and programming instructions stored in the memory and operable on the processor, wherein the programming instructions, when operating on the processor, cause the processor to: hold any transferred tokens for vehicles, vehicle components, vehicle software, and the data records for such; wherein the records for any given individual component or piece of software or vehicle may include records of any servicing or repairs or updates that have been performed on the component or vehicle or software; provide a numeric score for a vehicle comprised of components and software based on the maintenance records available for the components and software of the vehicle, where applicable; and maintain private control of tokens in the end user wallet to maintain user privacy of personal data.
 2. A method for transacting in an environment with intermittent connectivity via a network backbone to a blockchain, comprising the steps of: operate a blockchain network without security provisions, using a blockchain network; wherein the blockchain network is accessible only with permission from the blockchain provider, using a blockchain network; execute smart contracts with specialized blockchain nodes, using a blockchain network; wherein the specialized blockchain nodes are contained within the blockchain network, using a blockchain network; wherein the smart contracts are capable of being executed based on a plurality of variable node types, using a blockchain network; wherein the plurality of variable node types allow or disallow transaction types to be written to the blockchain utilizing predefined node rules, using a blockchain network; operate at least one smart contract pricing node for the purpose of assisting smart contracts with executing by routing record and contract requests to the correct nodes on the blockchain, using a blockchain network; operate long-life tokens within the blockchain that may last indefinitely, using a blockchain network; operate short-life tokens within the blockchain which may last until a predetermined termination prerequisite is met, using a blockchain network; allow multiple blockchain implementations to be utilized with differing settings, variable node types, and token types, using a blockchain network; facilitate token transferal transactions within the blockchain, using a blockchain network; facilitate smart contract transactions and transferals within the blockchain, using a blockchain network; facilitate the use of pre-compiled code to be implemented as a predefined contract within the blockchain, using a blockchain network; maintain and keep track of a plurality of unique tokens for records of parts or components of vehicles, using a technician wallet; maintain and keep track of a plurality of unique tokens for records of software and software versions of components of vehicles, using a technician wallet; allow the owner of the technician wallet to transfer a vehicle component token or software token to a vehicle wallet, using a technician wallet; contain and maintain a plurality of tokens for vehicles, vehicle components, and software related to vehicles or vehicle components, using a commercial wallet; allow transference of maintained tokens to a technician's wallet, using a commercial wallet; allow for monitoring of token deposition and withdrawal from the commercial wallet, using a commercial wallet; create new tokens for completed vehicles, or vehicle components, or vehicle software, or component software, including records for data for such, or any combination of these tokens, using a manufacturer wallet; issue the newly created tokens to a commercial wallet at the manufacturer wallet administrator's discretion, using a manufacturer wallet; hold any transferred tokens for vehicles, vehicle components, vehicle software, and the data records for such, using an end user wallet; wherein the records for any given individual component or piece of software or vehicle may include records of any servicing or repairs or updates that have been performed on the component or vehicle or software, using an end user wallet; provide a numeric score for a vehicle comprised of components and software based on the maintenance records available for the components and software of the vehicle, where applicable, using an end user wallet; and maintain private control of tokens in the end user wallet to maintain user privacy of personal data, using an end user wallet. 